The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Last summer’s Alberta floods were the costliest natural disaster in Canada’s histry, with $1.7-billion in insured damages.
Last summer’s Alberta floods were the costliest natural disaster in Canada’s histry, with $1.7-billion in insured damages.
(Jeff McIntosh/CP)

Insurers struggle against tide of water damage

The insurance industry is struggling to come to grips with how to measure the risk posed by devastating water damage.

The standard methods of calculating property insurance rates based on historical claims may no longer be reliable because of rapid changes in climate, deteriorating infrastructure and changes in living patterns, according to the Canadian Institute of Actuaries (CIA) and KPMG LLP.