Hail Alley: Why repeated hail damage is so concerning for insurers

The latest hailstorm to strike Calgary on July 13 caused about $92 million in insured losses, according to initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ).

It’s a far cry from the losses following the massive hailstorm that swept through the city in August 2024. That storm costs insurers an estimated $3.3 billion, according to the fifth loss estimate from CatIQ released Aug. 6. It was the costliest hailstorm — and the second-costliest natural disaster — in Canadian history.

The time has come for a serious conversation about repeated hail damage, Insurance Bureau of Canada (IBC) says in an Aug. 14 release.

“Insured damage from hailstorms in Alberta over the past five years now stands at $6 billion,” said Aaron Sutherland, vice president of IBC’s Pacific and Western regions.“Continued rebuilding on this scale is unsustainable and will put pressure on premiums until more is done to build resilience that prevents hail damage in the first place,”

“We know what’s required — better building codes, financial support for retrofits, and enhanced risk-mapping and warning systems,” he says. “It’s time for a national conversation on how we can make these changes a reality to better protect Canada’s communities moving forward.”

In the July 2025 hailstorm, 65% of all claims were from damage to vehicles, IBC says in the release. The supercell storm brought high winds, heavy rain and large hailstones, particularly to the northwest region of the city, Canadian Underwriter reported at the time.

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Last year’s hail event on Aug. 5, 2024, brought thunderstorms to the southern Alberta foothills region, which then drifted eastward with the prevailing winds. Several storm cells produced very large hail — up to the size of baseballs in some cases.

“One such storm cell moved across northern Calgary and neighbouring Strathmore, causing significant damage to homes and businesses,” CatIQ says. “Hailstones punched holes in vinyl siding on homes, broke windows, and severely damaged roofs, including that of the Calgary International Airport.”

Canadian Underwriter reported at the time the intense rain and hailstorm caused “significant water damage” to part of the Calgary Airport Authority’s terminal. Calgary-based WestJet also cancelled flights and grounded 16 aircrafts with major hail damage.

CatIQ president and CEO Laura Twidle reports nearly 85% of personal lines claims and 90% of auto claims are closed for the August 2024 storm.

Hail Alley

Many areas of Calgary sit within Canada’s ‘Hail Alley’ — a region long known for frequent and damaging hailstorms.

Including last month’s hailstorm, Alberta has experienced at least one major hailstorm every year for the past two decades, resulting in more than $11 billion in insured damage, IBC reports. The past five years alone have accounted for $6 billion of that total.

“These hailstorms are not isolated, one-off incidents — they reflect a clear and troubling pattern that demands action through public policy,” Sutherland says. “It’s far past the time to have a serious conversation about the extent of repeated hail damage, specifically in Calgary, and the urgent need to consider resilience measures and adapt more effectively to our new weather reality.”

For years, insurers have been calling on all orders of government to better protect Canadians from natural disasters. In Calgary, IBC says that must include efforts to:

• Revive Calgary’s Resilient Roofing Rebate Program, which provided homeowners with financial assistance to retrofit their homes to protect them from hail damage
• Mandate the use of hail-resistant roofing and siding for all new construction in high-risk areas
• Improve hail notification services so residents are better able to prepare and move vehicles out of harm’s way when a storm is coming.

Canada also needs a federal coordinating agency to lead emergency preparedness and recovery efforts, ensuring communities are not left to develop their own response plans from scratch after every catastrophic weather event.

“Every other G7 country has an agency operating in this capacity — it’s time for Canada to follow suit and take a proactive approach to emergency management,” IBC says.

Jason Contant

Jason has been an award-winning journalist with Canadian Underwriter for more than a decade, including the past three years as associate editor and, before that, as digital editor for seven years.