The rainstorm that caused extensive flooding in Toronto last month resulted in Canada’s second economic loss of more than $1 billion this year, says a new report.
According to Chicago-based Impact Forecasting, the catastrophe modeling division of reinsurance broker Aon plc, the record rainfall in Toronto resulted in the second billion-dollar natural disaster of 2013. The flooding in the Calgary area earlier in the year was the first big loss event. It says that total economic losses from the Toronto storm are estimated to approach $1.5 billion, with roughly half of that cost being covered by insurance ($750 million).
In the U.S., it notes that three stretches of severe weather also impacted the U.S. in July, which caused combined economic and insured losses that are expected to reach hundreds of millions of dollars.
“With the calendar turning into August, the focus in the United States begins to shift from tornadoes to hurricanes as we begin to enter the peak of the Atlantic Hurricane season,” notes Steve Jakubowski, president of Impact Forecasting.
“The U.S. remains in a record stretch without a major hurricane landfall (Category 3+), though recent history with Superstorm Sandy (2012), Hurricane Irene (2011) and Hurricane Ike (2008) shows that storms with weaker intensities can still cause catastrophic damage,” he adds. “Historical averages suggest that the U.S. is overdue for a major hurricane landfall, and we’ll watch to see what the rest of the 2013 season brings.”
The report also notes that China suffered three stretches of severe rainfall in July, which killed more than 225 people and caused economic losses in excess of US$1.0 billion; an earthquake there killed at least 95 people, injured 2,840 others, damaged or destroyed 80,000 homes, and caused total economic losses of US$3.25 billion; and, three tropical cyclones affected Asia causing almost US$900 million in economic damages.