Ice Storm `98 Revisited

A reprint of an article by Brendon Hunt, that originally appeared in the Cornwall Business Magazine

Last year's ice storm caused terror not only in Ontario, Quebec and in the Atlantic Provinces, but also in board rooms of insurance throughout Bay Street as well.

The storm, which lasted between January 4th to the 10th was the single largest disaster in the history of our nation with the Insurance Bureau of Canada recording 700,000 claims with insured damage in excess of $1.1 billion. According to Lloyd's of London where much of the reinsurance for catastrophes such as this is placed, it was the 40th largest loss on record worldwide through out the history of mankind.

Over 1.6 million residents of Ontario and Quebec went without power, some for over a month. Hydro and repair crews from across Canada, as well as the United States, came to our aid working long hours in tenuous conditions to repair over 1400 hydro towers and replacing over 35,000 utility poles. There were 25 deaths attributed to the ice storm, including house fires, hypothermia, carbon monoxide poisoning and heavy debris caused by ice buildup.

From a more localized perspective, states of emergency were declared in every locale, including and surrounding the "Friendly Seaway City". The Insurance Association of SD&G, who liaised with local, provincial and federal government agencies throughout the disaster, estimated the insurable losses in our trading corridor topped 18 million, with several additional millions claimed from the disaster relief Committee.

Most insurance brokerages in the SD&G area continued to process ice-storm related claims into the autumn months. This was due to unforeseen and often, hidden damage caused by the storm. Independent insurance adjusters estimate that their case load attributable to the ice storm will take them until mid-1999 to complete.

Millions of dollars of relief aid was raised in our region by a number of general donations and fundraising efforts. A matching formula devised by emergency Preparedness Canada and provincial authorities, ensured that even those people without insurance were recompensed for direct loss or damage emanating from the storm.

Ray Mezda is a general Manager of the Insurance Bureau of Canada , which is a united voice for over 260 property and casualty insurers transacting business in the Nation. Last Spring , Mezda presented a brief to the Nicolet Commission, which is a Quebec government body charged with collecting and analyzing data on the "storm of the Century".

There were 4 key recommendations put fourth by Mezda:

• that guidelines and instructions related to prevention be "dispensed by an established agency to prevent the public from being needlessly alarmed".
• That the Insurance Bureau of Canada with other associations representing the various trades, conduct communications so as to provide disaster victims with the best possible advice on choosing a contractor to repair property damage.
• That the Departments of Public Security ensure the coordination of all communications activities of the different agents who have information to give disaster victims.
• That the insurance industry have access to essential services which will allow its employees to work for disaster victims.

Those of us in the insurance industry in general, and in the three united counties in particular, "Stepped up to the plate" in the most trying of circumstances to tend to the needs of our insured clients and the population in general.

As in previous disasters, everyone has learned form this difficult situation, and although no one yearns for another such calamity, it is comforting to know that professional insurance brokers and their dedicated staff can be counted on upon to serve those less fortunate, in times of trouble.

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