Severe Weather Events in Nova Scotia Lead to $490 Million in Insured Losses

The extreme weather events in Nova Scotia last year led to $490 million in insured losses, highlighting the increasing severity of climate-related disasters. In May and June, two significant wildfires in the Barrington area and Upper Tantallon destroyed over 200 homes and numerous structures, making it the province’s worst wildfire season on record. These fires were fueled by the driest conditions since World War II and strong winds, scorching 25,000 hectares.

In July, severe flooding caused by a deluge of 250 millimeters of rain within 24 hours claimed four lives, including two children, in West Hants, with additional flooding in East Hants, Lunenburg, and Queens County. These back-to-back disasters underscored the urgent need for comprehensive disaster preparedness, as noted in the report by the Insurance Bureau of Canada.

The report also highlighted the insurance claims process, revealing that 88% of wildfire-related claims and 90% of flood-related claims have been resolved. However, challenges such as skilled labor shortages, building material scarcity, and a lack of adjusters have delayed the settlement of outstanding claims. The industry expects large-loss events to become nearly annual occurrences due to climate change.

The frequency and severity of extreme weather events in Canada have been on the rise, with insured losses exceeding $3 billion annually in recent years. This marks a significant increase from the annual average of $512 million in losses from 1983 to 2009. The report underscores the growing financial impact of climate change on the insurance industry and the pressing need for enhanced disaster resilience and preparedness.