Flood insurance claims could top $1 billion in GTA after storm hits Ontario

Morningstar DBRS says insurance claims caused by the Toronto flood earlier this week could be “significant but manageable” for insurers.

The credit rating agency says the insurance industry can expect insured losses of around $1 billion from the heavy rains on July 16 that led to flooded highways and basements.

The agency says the insured losses are large for a single weather event, but they’re entirely manageable for the insurance industry.

While the single event won’t disrupt the industry, insurers have been facing upward pressure on claims including more than $3 billion in claims in both of the past two years.

To help with all the expected claims from the flood, Ontario’s insurance regulator says it has implemented temporary measures that should speed up processing.

The Financial Services Regulatory Authority of Ontario says under the short-term measures, firms can use claims adjusters with licences outside of Ontario and insurers in the province can use the services of employees of affiliated insurers.

Numerous sections of highways and main roads in Mississauga and Brampton were rapidly overtaken by rising waters last Tuesday, leaving hundreds of drivers stranded in their vehicles before either being rescued by first responders or making their way to safety by themselves and leaving their cars behind.

In one three-and-a-half-hour period on Tuesday, more than 97 mm of rain was measured at Pearson Airport in Mississauga including a 10-minute span in which 26 mm of rain fell.

An Environment and Climate Change Canada weather station recorded 122.9 mm of rain at Canada’s biggest and busiest airport between Monday and Tuesday. It was the most rain received in any one area across southern Ontario.

– With files from Insauga.com