Climate Change Strains Canada's Insurance Adjusters Amid Rising Catastrophic Events

Hotter summers and severe weather, likely linked to climate change, are leading to personnel shortages and claim delays in Canada's insurance sector. The increased frequency of natural disasters has escalated insurance claims, stressing the industry with a dwindling workforce and certification challenges across provinces, necessitating urgent reforms.

Hotter summers and severe weather, likely tied to climate change, are creating personnel shortages and claim delays in Canada's insurance sector. The surge in natural disasters has increased insurance claims, stressing the system with a reducing workforce and province-specific certification challenges.

The industry relies on insurance adjusters to assess claims and determine losses covered by policies. Rising claims triggered by climate change are overburdening insurance adjusters, who are crucial for consumer support post-catastrophes, according to industry insiders. Notably, wildfires in Jasper caused substantial insured damages, highlighting the growing pressure on the sector.

Intact Financial and TD Insurance, major Canadian insurers, reported significant weather-related claims costs this year. The Insurance Bureau of Canada noted a dramatic increase in claims due to extreme weather over the past decade. Industry experts predict a 10% to 20% rise in the need for adjusters in the next five years, already hard-pressed amid peak claim seasons.

(With inputs from agencies.)