DBRS Morningstar estimates hurricane Fiona will cause between $300 million and $700 million in insured losses in Atlantic Canada for a record high in the region.
The credit rating agency says in a report that that amount is roughly in line with previous natural disasters in other provinces such as the flooding in B.C. last year that saw $515 million in insured losses.
Atlantic Canada represents a small portion of the Canadian property insurance market, according to the report.
However, hurricane Fiona will likely go down as one of the region’s largest catastrophic events and more could be on the horizon.
Climate change is worsening the region’s risk to major storms like hurricane Fiona.
DBRS Morningstar says insurers may be more cautious when assessing risk in the region, likely raising premiums to cover the rising costs of payouts.
This report by The Canadian Press was first published Sept. 27, 2022.