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Insurance claims rising globally, Canada particularly at

risk

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Adjusters' workload has increased dramatically, many

retiring

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Canada insurance claims tied to weather up 93% over prior

decade

By Nivedita Balu

TORONTO, Sept 3 (Reuters) - Hotter summers in Canada

that have sparked wildfires in tourist areas, intense hailstorms

and thunderstorms with severe flooding in major cities, all

likely linked to climate change, are leading to personnel

shortages and potentially claims adjustment delays, according to

insurance sector insiders.

The industry depends on teams of insurance adjusters to look

into claims and determine the amount of loss, or damages covered

by insurance policies. They are a vital cog in a business being

stretched thin by mounting claims from homeowners and

businesses.

Insurance claims are rising globally as climate change spurs

more severe weather, but Canada is particularly at risk as one

of the world's most vast and forested lands. Many adjusters are

retiring and certifications are different in each province,

making it challenging for Canada to handle increased claims,

companies, consumers and industry groups told Reuters.

"These events have placed immense pressure on insurance

adjusters, who are critical following natural catastrophes, as

they ensure the industry can support consumers as quickly as

possible," Insurance Bureau of Canada, an industry group, said.

In August, insurance adjusters toured Jasper by bus after

firefighters had battled a blaze that damaged or destroyed a

third of the mountain community, making it the second most

expensive wildfire in the province of Alberta's history by

insured losses.

The fire surpassed C$880 million ($653.55 million) in

insured damages, according to initial estimates from Catastrophe

Indices and Quantification, the Insurance Bureau of Canada said.

Globally, many insurers have coped with unexpected claims in

recent years, mainly by raising premiums and excluding some

businesses.

But Intact Financial ( IFCZF ), Canada's biggest property and casualty

insurer, estimates about 250 policy holders had damage in Jasper

and it expects losses within its annual range of C$900 million

for all catastrophic events. The company insures about 700

families and businesses in the Jasper area.

The insurance division of TD, Canada's second

largest bank, said weather events in August, including Calgary

hailstorms and Montreal floods, would lead to claims and related

costs of more than C$300 million in the fourth quarter, after it

recorded claims costs of C$186 million due to floods in Toronto

and Alberta wildfires in July.

Last year, wildfires burned 18.5 million hectares (45.7

million acres) of land, more than double than the previous

record set two decades ago, turning European and American skies

orange and the air grey.

Over the last 10 years, the number of Canadian claims tied

to extreme weather events has risen to more than 1.3 million, up

93% from a decade ago, according to the IBC.

"I remember when I would only get one catastrophic event a

year... now we're looking at a dozen of them a year," said Anita

Paulic, director of operations and catastrophe response at

ClaimsPro, an independent claims management firm.

Paulic, whose firm services insurers by sending out teams of

claims adjusters, said that in the last few weeks she has had to

redeploy personnel to handle flood claims in Toronto, hail

damage claims in Calgary, and those related to the wildfire.

Insured losses from natural disasters averaged C$2.2 billion

($1.63 billion) a year over the last decade, far exceeding the

previous decade's average of C$632 million, according to the

IBC, which expects escalating losses to continue.

Adjusters are often playing referee between the consumer and

the insurers, and the increase in volume has slowed claim

settlements, especially as access to certain areas following

catastrophes is restricted.

Kyler Hart-Moore, executive general adjuster at

Alberta-based Laurin Adjusters, said file loads have doubled

during the catastrophic seasons for some in the industry.

"You're just getting a grip on one event and getting those

files under control, and the other event hits right on its

tail," he said.

He called the work a "drop your fork service."

"No matter what part of dinner you're in, if someone calls

you get up and you go."

PEAK CLAIM SEASON

In Jasper, industry experts say claim settlements could take

between four weeks to six months depending on the damage while

adjusters also address the other weather-related disasters.

There have been over 4,800 wildfires in Canada this year,

the world's third most-forested nation. The blazes have forced

thousands of people to evacuate their homes and also disrupted

oil and mining operations in remote regions.

For insurance adjusters, this means work in their peak claim

season between June and August has intensified dramatically.

The increase comes as many Canadian claims adjusters are

retiring, industry sources said. Independent adjusters are

licensed provincially, an additional challenge when they need to

relocate to assess damages in different parts of the country.

Many companies are already looking to the next generation of

adjusters as increased work flow and claims will require at

least 10% to 20% more adjusters in the next five years, industry

experts say.

Some companies including ClaimsPro are looking at college

job fairs to recruit younger professionals more open to

travelling.

But the job, which requires working with people still

reeling from losing a home and treasured belongings or seeing

livelihoods destroyed, isn't for everyone.

"The degree of empathy without sliding into sympathy, it's

very key and it's difficult," said Hart-Moore.

($1 = 1.3465 Canadian dollars)