CatIQ Issues Annual Update of Insurance Industry Exposure Database for Canada

CatIQ - Catastrophe Indices and Quantification. A PERILS Company.

CAD 6.2 trillion Personal Property Assets Insured Against Flood

Toronto (May 25, 2023) – Catastrophe Indices & Quantification Inc. (CatIQ), a subsidiary of Zurich-based PERILS AG, today released the annual update of its Canadian insurance Industry Exposure Database (IED).

The IED is developed with the support of the Canadian P&C industry and now contains 2022 year-end estimates of Canadian industry property sums insured. The database makes available industry property sums insured, number of risks, and prevailing original insurance conditions by:

  • Canada Post Forward Sortation Area (FSA)/CRESTA,
  • Peril (windstorm, hail, fire, flood, sewer back-up, earthquake, and volcanic eruption),
  • Line of business (personal, commercial, and motor hull), and
  • Cover type (building, vehicle, contents, business interruption and additional living expense, where applicable).

The Canadian insurance market continues to show steady growth for personal lines specialty perils cover in the 2022 year-end dataset. Since the start of data collection in 2016, there has been a compound annual growth rate (CAGR) of 17% in the personal lines flood total sums insured. Personal flood exposure currently stands at CAD 6.2 trillion. Prior to 2015, overland flood coverage was generally not available to homeowners in Canada.

Commenting on the announcement, Laura Twidle, President and CEO of CatIQ, said, “The significant growth in personal lines flood insurance in recent years is clearly a positive development for the market. This, in combination with the announcement from the Government of Canada relating to the creation of a national flood insurance program, will undoubtedly help to bolster the protection of Canadians’ assets. I would like to take this opportunity to thank all our participating insurers for their support in the production of this database.” 

Launched in June 2018, CatIQ’s IED is based on detailed exposure submissions from the majority of the Canadian insurance market. Consistent with PERILS’ globally recognized methodology, CatIQ’s IED is updated annually from the ground-up. With the support of the participating insurers, CatIQ also produces industry loss estimates at the FSA level as follows:

  • The same perils, lines of business and cover types as listed above
  • For any catastrophe that results in an industry loss greater than C$250 million

This detailed loss dataset comprises eleven major events, including:

  • Fort McMurray Wildfire – April 2016
  • Windstorm in Ontario and Quebec – May 2018
  • Ottawa and Gatineau Tornadoes – September 2018
  • Fort McMurray Ice Jam Flooding – April 2020
  • Calgary Hailstorm – June 2020
  • Calgary Hailstorm – July 2021
  • British Columbia Flooding – November 2021
  • Ontario and Quebec Derecho – May 2022
  • Hurricane Fiona – September 2022
  • Coming Soon – Eastern Canada Bomb Cyclone – December 2022
  • Coming Soon – Ontario & Quebec Spring Ice Storm – April 2023

Luzi Hitz, CEO of PERILS, added: “I congratulate the CatIQ Team for the successful launch of the Canadian IED 2023. CatIQ’s high-quality market exposure and loss data not only support a range of model validation and market benchmarking activities but also facilitate risk transfer via industry loss-based re/insurance products. The industry loss data thereby serve as triggers while the exposure data enable the assessment of the expected loss costs of such transactions. In addition, structured industry loss triggers can be designed which follow the protection buyer’s portfolio and thus reduce basis risk.”

CatIQ’s IED module is available on CatIQ’s platform along with the Canadian catastrophe loss database. Primary insurers participating in the IED program receive the IED module at no extra charge. Furthermore, CatIQ’s Canadian IED and granular loss information is made available on the PERILS platform. In addition to Canada, PERILS’ Industry Exposure and Loss Database covers Australia, Austria, Belgium, Canada, Denmark, France, Germany, Ireland, Indonesia, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, the Philippines, Sweden, Switzerland, Thailand, Turkey, and the United Kingdom.

About CatIQ

Toronto-based Catastrophe Indices and Quantification Inc. (CatIQ) is a subsidiary of Zurich-based PERILS A.G. and delivers detailed analytical and meteorological information on Canadian natural and man-made catastrophes. Through its online subscription-based platform, CatIQ combines comprehensive insured loss and exposure indices and other related information to better serve the needs of the insurance / reinsurance / ILS industries, public sector and other stakeholders. www.catiq.com. CatIQ was established in 2014 with the support of the overwhelming majority of the Canadian insurance and reinsurance industry and is widely recognized as the most reliable source of catastrophe loss information in Canada. CatIQ also partners with MSA Research to host the Canadian catastrophe conference, CatIQ Connect, connect.catiq.com, with the next event scheduled for Feb 6-7, 2024 at the Metro Toronto Convention Centre.

About PERILS AG

PERILS is an independent Zurich-based organisation providing industry-wide natural catastrophe exposure and event loss data. The PERILS Industry Exposure & Loss Database is available to all interested parties via annual subscription. The database contains industry property sums insured and event loss information on a CRESTA zone level and per property line of business. PERILS industry loss estimates provided via the PERILS Industry Loss Index Service can be used as triggers in insurance risk transactions such as industry loss warranty contracts (ILW) or insurance-linked securities (ILS). The service currently covers the following 18 countries: Australia, Austria, Belgium, Canada, Denmark, France, Germany, Ireland, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, Sweden, Switzerland, Turkey, and the United Kingdom. In addition, PERILS industry exposure data are available for Indonesia, the Philippines and Thailand. The use of PERILS exposure and loss data other than in conjunction with a valid PERILS License and according to its terms, by a Licensee or an Authorized User as defined in the License, is illegal and expressly forbidden.

More information can be found at https://www.catiq.com and https://www.perils.org

Contacts:

Laura Twidle | +1 416 368 1723 | [email protected]

Nigel Allen | +44 7988 478824 | [email protected]