EFI Global

First Cat Of The Year Predicted After Powerful Derecho

 Wednesday, May 25, 2022

 Canadian Underwriter

A series of powerful thunderstorms that affected Ontario and parts of Quebec this weekend is already being billed by the industry as the first major Cat of 2022.

And while industry experts anticipate a large number of insured damages, one predicts the storm may result in a lot of ‘hidden damage.’

Labeled a ‘derecho’ by forecasters (essentially, a widespread, long-lived wind storm associated with a band of rapidly moving showers or thunderstorms), the event left roughly 1,000 kilometers of damage in its wake and at least 10 deaths. As a result, Glenn McGillivray, managing director at the Institute for Catastrophic Loss Reduction, says there will be a ‘mix’ in severity of claims.

‘Typically speaking, storms like this can cause a large number of smallish claims,’ McGillivray says. ‘We certainly are seeing that. But we’re also seeing losses on the high end as well. We’re seeing roof losses, buildings collapsing, and things of that nature.