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Insurers Try to Predict Risk as Severe Weather Becomes ‘Actuary’s Nightmare’

Water has overtaken fire as the greatest insurance risk for homes, and the Insurance Bureau of Canada (IBC) is testing a new Municipal Risk Assessment Tool to identify streets that will be hardest hit by severe weather. “There’s been a 12% increase in the amount of rain in Canada since 1950, and extreme weather events that happened every 40 years in the past now occur every six years, both factors that have helped drive up insurance claims,” CBC reports. In 2013, the industry paid out $1.7 billion for insurance claims in Alberta and $1 billion in Ontario. Bill Adams, vice-president of IBC’s Western and Pacific region, said predicting severe weather is an “actuary’s nightmare.” (h/t to Corporate Knights [1] for spotting this story)

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