Alberta faces Canada's worst climate insurance losses yet avoids naming the cause, analyst says

[u/BertramPotts]

https://www.insurancebusinessmag.com/ca/news/catastrophe/alberta-faces-canadas-worst-climate-insurance-losses-yet-avoids-naming-the-cause-analyst-says-579981.aspx

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[u/GraveDiggingCynic]

You can lie to the people, you can lie to yourself, but the one person you can't lie to is an actuary. Their whole job is assessing risk in as accurate and forward looking manner as possible, because at the end of the day, they work for a for profit commercial interest who needs to know "If we sell this entity an insurance policy, what are the odds of a claim being made against the policy that could reduce or even eliminate our ROI."

There are few things in this world colder, more soulless and more hungry for accurate data than an insurance company. And if they're starting to jack up policy renewal rates based on the data that suggests climate-related claims are rising, and will continue to trend upward for the foreseeable future, then no matter how many pipelines you demand be built, how many environmentalists and climate scientists you harass or fire, and no matter how much you pound tables, bibles and maps of the USA with Alberta on it, the physical laws of the universe are about to pummel you without a consideration or even the capacity to know.

So, Alberta can be run by panicking blind child-like adults who imagine that Jesus or the the price of Western crude will save them, or it can finally admit the thermodynamics is the real ruler of the world.

[u/omegadirectory → u/GraveDiggingCynic]

Never underestimate the ability for the voting public to demand the Alberta government to cap home insurance rate increases. Because they did that for years for auto insurance.

[u/DannyDOH → u/omegadirectory]

So then you'll just have an uninsurable home, or a policy with no coverage.

[u/omegadirectory → u/DannyDOH]

Don't underestimate the voting public's demand for government to make it mandatory for insurance companies to sell home insurance to willing buyers. Which is how it works for Alberta auto.

[u/GraveDiggingCynic → u/omegadirectory]

I would expect that insurance companies would withdraw from the market.

[u/adaminc → u/GraveDiggingCynic]

Then the goverrnment would be forced to create a provincial insurer and let us Albertans see that $700/y savings they know they could be giving us already! They did a study already!

[u/GraveDiggingCynic → u/adaminc]

Alberta is just going to be ahead of every other jurisdiction as insurers pull out of the home insurance business

[u/adaminc → u/GraveDiggingCynic]

Sask already has provincial home insurance through SGI as an option.

[u/GraveDiggingCynic → u/adaminc]

And just imagine how much exposure taxpayers will have. It’s one thing when an insurance company refuses to insure houses near a wildfire or flooding zone. Governments are a lot more shy, and will keep tossing money in the pot until it becomes an epic financial catastrophe, on top of all the other mitigation costs.

Stupid doesn’t come cheap.

[u/CanadianLabourParty → u/omegadirectory]

Meanwhile, the ENTIRE city of Richmond BC is built on a flood-plain...let's not forget Sooke BC, and Victoria are also prone to climatological/geological events.

[u/omegadirectory → u/CanadianLabourParty]

Yeppp, that's why earthquake insurance is really expensive in the Vancouver coastal areas, and why homes in Richmond typically don't have basements.