…is the estimated amount that is to be saved by the home insurance industry over 2020 in Alberta, because of the Covid-related restrictions taken across the province almost all year long.
An overall decrease of 10.48 % in home insurance claims across Alberta
As the threat of a second epidemic wave materializes across Canada, 2020 already is a year marked by major changes in the domestic habits of Albertans. In fact, due to Covid-19, a large number of households have had to spend a lot of time at home, either being on telework, temporarily laid off, or quite simply because of the restrictive measures taken by the authorities – especially in the spring and now again in some areas.
Thus, as the figures show, this context has greatly affected the number of home insurance claims made by the people:
Water, fire and theft damages decreasing, domestic accidents increasing
With many Alberta citizens forced to stay home during long months, domestic incidents decreased in a significant proportion since the beginning of 2020. Indeed, whilst being at home – working, on furlough or looking after kids unable to go to school – people avoided much home damages to happen – whether being theft, fire or water damage and other classic domestic damage that often usually occur when the house is empty. This is what say the numbers:
- Theft and burglaries are expected to decrease by 13.99% over year 2020 in Alberta, meaning a $15.1 million discount for home insurance providers in payouts
- While being home, people can avoid natural causes to make damage into their homes. Indeed, fire (-12.4%), weather (-11.5%) and water (-13.5%) damages are expected to go down in 2020 across Alberta
- On the contrary, HelloSafe estimated a 12.5% increase in accidental damages in the province, because of people spending more time at home.
The below graph shows on which extent home insurance claims have dropped:
The savings made by the home insurance industry in Alberta per city
With regard to the distribution of savings made by home insurers in Alberta, it is not surprising to see that the most populous agglomerations are also those where the amount of the savings made over personal goods and civil liability claims is the highest:
- Calgary – which concentrates 30.5% of the Alberta inhabitants – accounts alone for around $40.8 million of the savings in payouts made across the province in 2020 by the home insurance industry – with a 10,75% decrease in home insurance claims in comparison with 2019
- The city of Edmonton ranks second, with $30.3 million saved on home insurance payouts by the industry – corresponding to a 10.63% decrease in claims
- Then, the cities of Red Deer ($3.2 million saved) and Leithbridge ($3 million) come next on the ranking of Albertan cities where home insurance savings have been the highest.
|Cities||Estimated claims decrease over 2020||Estimated savings made on home insurance payouts|
A national perspective : $1.1 billion savings in home insurance payouts over Canada in 2020
Across Canada, the total savings on home insurance payouts for 2020 could amount to more than $ 1.1 billion. As shown in the graph below, which groups together the 4 most populous provinces in Canada:
- Ontario is the Canadian province with the greatest home insurance savings in 2020: $ 439 million, for an overall claims decrease of 10.67%
- With just under $ 263 million in savings, Quebec ranks second among the Canadian provinces with the strongest savings, ahead of British Columbia (146.7 million) and Alberta (130.4 million).
Note that you can also access :
– A version of this study focused on Canada: click here.
– A version of this study focused on Ontario: click here
– A version of this study focused on British Columbia: click here
– To access the HelloSafe media room, click here.
Antoine Fruchard, CEO & expert at Hellosafe.ca
« While many Albertans found themselves spending the majority of their time at home in 2020, domestic claims have significantly decreased. However, the Alberta home insurers have not yet initiated a response to this situation, which also exists for auto and health insurance products. However, it seems to me that the policyholders could be entitled to expect a reduction on their premiums, if only in the face of the economic difficulties which await Alberta and the whole Canada in the months to come. In addition, the changes induced by Covid-19 have brought major trends – such as teleworking for example, which risk lastingly transforming the relationship of people to their housing. Here too, insurance companies are expected to change and adapt their policies, in a fast-changing world.»
This study was built upon public and private sources. In addition, several of our insurance partners were able to provide us with anonymous statistics over the period studied. Under the term ‘home insurance’, we analyze here the ongoing trends in personal property and civil liability insurance. At this stage, these figures are still estimates, pending final results after the end of 2020. For more information on our editorial line, please click here.
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