May/June 2020 Volume 14 • Issue 3 CATTALES e-newsletter of the Institute for Catastrophic Loss Reduction

Inside this issue

Taking action to reduce hail losses 3 New ICLR publication: ICLR shares more details on undertaking Protect your home from extreme heat 6 PIEVC Program

On March 30, 2020, Engineers Engineers Canada: What’s the history and the Institute for Catastrophic Loss of ICLR’s involvement with the PIEVC Reduction (ICLR) jointly announced that Program? an agreement had been reached for ICLR to assume ownership of Engineers Dan Sandink, Director of Research, ICLR Board of Directors Canada’s PIEVC Program, including the ICLR: We were involved pretty much PIEVC Protocol for infrastructure climate since the beginning. We were Carol Jardine (Chair) • Wawanesa risk and vulnerability assessment. ICLR represented on the original committee Paul Christoff • SCOR has partnered with the Climate Risk back in 2005 as the Protocol was being written. Paul [Kovacs, Executive Director, Steve Cohen • RSA Canada Institute and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) ICLR] was on the Advisory Committee Ken Coley • Western GmbH to operate the PIEVC Program itself and ICLR staff, including myself, Matt Davison • Western and offer the Protocol in Canada and were resource supports. Throughout the Lisa Duval • Lloyd’s Canada internationally. years, Paul had remained on the committee and in its more recent Louis Gagnon • Intact With ownership of the PIEVC program iteration, Paul was vice-chair. We had Phil Gibson • Aviva having now been transferred to ICLR, always stayed closely connected with Paul Kovacs • ICLR Engineers Canada reached out to ICLR to [Engineers Canada’s PIEVC lead] David discuss their history with the PIEVC Lapp and others involved in the PIEVC Claus Kroll • Munich Re Canada Program, their partnership with GIZ and Program because of its importance. Monica Ningen • Swiss Re the Climate Risk Institute, and their future It’s been a very influential program in Andy Taylor • Gore Mutual plans for the Program. Canada and one of the most important > John Taylor • OMIA Dan Shrubsole • Western Rob Wesseling • Co-operators in terms of assessing infrastructure ICLR: GIZ had been one of the main EC: What is ICLR’s future vision for the vulnerability, which is a key concern of proponents of PIEVC internationally, and PIEVC Program and the Protocol? our organization. part of the call for proposals was looking for opportunities to grow the use of ICLR: The vision is to continuously EC: On that note, how does the PIEVC PIEVC not only nationally, but also improve the resource based on input from Program fit into ICLR’s mandate? internationally. GIZ has been leading that the users, and key decision-makers and with their work in South America and in policy-makers in Canada. The influence of ICLR: Our mandate is focused on reducing parts of Asia and Africa. So we thought the PIEVC Program and the Protocol itself risk from extreme events, natural hazards, that their assistance on the international in Canada is undeniable; it’s the leading disasters, and related issues. Infrastructure aspect of PIEVC was critical. Their work resource in terms of infrastructure is a major component of that. Time and and their involvement has certainly vulnerability assessment. First we want time again, the major reviews of concerns increased the profile of PIEVC to make sure we maintain that aspect of and vulnerabilities associated with climate internationally and we’re hoping to let the Program. change focus on the potential impacts of them take the lead on the international infrastructure failure or the implications We’d like to increase its usability and aspect on the program. There’s probably of climate loads exceeding the capacity of accessibility. We want to make sure that no other organization better suited to do infrastructure, and the downstream information collected in different PIEVC that than GIZ. impacts of that are significant. So it’s assessments becomes accessible and important to understand the infrastructure The Climate Risk Institute has also had usable so that there’s a centralized aspect of vulnerability to extreme events pretty strong involvement in the database of information and resources and PIEVC is one of the main tools for application of the PIEVC Protocol in coming out of the Program. doing that. Canada, specifically with adapting it for We want to make sure that it is use in Indigenous communities, and also EC: What prompted ICLR to respond to continuously improved with the advice of their relationship with many climate Engineers Canada’s request for proposals the right stakeholders. So we have a plan experts who have been involved in and put forward a proposal to assume in the more medium-term to re-form and developing the program and applying it ownership of PIEVC? re-establish a strategic PIEVC advisory in Canada. group, as well as formalize the ICLR: We saw the need for PIEVC to One of the advantages of working with collaboration with the actual users of the continue on. A core part of our mandate both the Climate Risk Institute and GIZ is protocol to make sure that the practical is to reduce disaster risk and PIEVC has to get that wider perspective in terms of aspects are updated and that the Protocol always been within a core set of major application of the Protocol. The three can be re-shaped so that it’s as usable as initiatives in which we’ve been involved organizations—us in the private sector, possible to potential users. and that we’ve found to be helpful and our relationships with the academic influential. So we thought it would be a In the near-term, we want to continue sector, and our connections nationally great opportunity for our organization several of the initiatives that had been and provincially throughout Canada, to become more significantly involved in started, like creating a more streamlined combined with GIZ’s international the program. version of the Protocol that can be used leadership, and the Climate Risk Institute’s as an initial assessment of infrastructure. technical and training expertise and their We’re not going to do it alone obviously. And we’re hoping to create some background in sectors that ICLR has We thought that our ability to quickly resources that can assist with the historically not been involved with – we facilitate partnerships would be Climate Lens assessments. advantageous for the program, which is thought it was the right combination. what we did with the partnership to But overall, the intent is to carry on the EC: In a practical sense, moving forward, undertake the program. We’re playing good work and the trajectory of the PIEVC what’s the division of responsibilities? one part of the role, but of course we’ll Program, which is to have a good, usable rely on the Climate Risk Institute and GIZ ICLR: ICLR will be the main administrative resource, create opportunities for for their expertise as well. hub, managing the program itself, the education and capacity-building for the documents, and releasing the documents program, and make sure that all the right EC: How did the partnership with GIZ and to partners. The Climate Risk Institute will players are involved and that the Protocol the Climate Risk Institute come about? be more involved in the more technical itself evolves to reflect the needs of all aspects of the program, as well as potential users and stakeholders that are training. GIZ is the lead on international interested in applying it. application.

2 Taking action to reduce hail losses

By Glenn McGillivray, Managing Director, ICLR

This article, which first appeared in Average annual number Canadian Underwriter’s Insblogs of days withAverage hail annual number (July 4, 2014) and in a subsequent issue of days with hail of Cat Tales, is reprinted here with the none June 13, 2020 southern storm 0 to 0.9 fresh in mind. The article advocates for 1 to 2.9 the use of Impact Resistant roofing and 3 to 5 Y U N K O greater than 5 siding products for homes in high risk O T RT N ER HW RI ES Iqualuit Whitehorse TO T hail zones. R N IES UNAVUT Yellowknife N B EW R F C I OU O TI N L SH D From an insurance perspective, essentially P U L A M AN C BI A D O IF A LB all of the large-loss hail events recorded in C IC ERT EA A N St. John’s Edmonton Canada have occurred in Alberta. Indeed, SA SK. C EC TI QUEB AN the top three most expensive hailers on L AN Victoria Salmon Arm Calgary .I. AT E P.E OC Regina Charlottetown record took place in that province. .B. Winnipeg N Halifax Fredericton . Emergency Preparedness Canada’s Montreal N.S Ottawa website lists the September 7, 1991 Toronto 300 0 300 600 km Calgary event as the most expensive hailstorm in Canadian history with $237 million in personal property damage. replacement of badly damaged roofs Hailstones generally become destructive However, that event was eclipsed by a which no longer function properly; when they are one inch wide or larger. July 12, 2010 Calgary storm that pelted shredded and missing siding, broken Once they reach that size, they have the the city with hailstones of almost four windows and skylights – all of which can capability to cause extensive damage to centimetres in width, resulting in more allow water into a home; and industrial and commercial assets; public than $400 million in claims. That storm, replacement of auto glass needed to infrastructure; trees, vegetation, crops in turn, was overshadowed by the restore the driveability of a vehicle. and lifestock; vehicles; and, homes. > August 12, 2012 hailer that saw parts of Calgary pelted with golf ball-sized stones. Insured damage from that event exceeds Total severe hail events per public forecast region (1978–2007) $500 million.*

These numbers may lull one into believing that damaging hailstorms can only happen in Alberta. However, hail can effect every province and territory in Canada and, historically, has to some degree or another. However, as the map indicates, the majority of hail days in 0 Canada occur in Alberta, the southern 1 to 30 31 to 60 Prairies and southern Ontario. 61 to 90 91 to 122 Hail claims for homes and cars are often to repair damage that is only cosmetic – or aesthetic – in nature. However, large hail events often result in claims for Environment Environnement Canada Canada

* This article was written just prior to the August 2014 Airdrie, AB hailstorm (insured loss $580m 2018 dollars), Canada’s costliest hailstorm until the recent event in southern Alberta. 3 Some of the measures that can be taken standards, the shingle products must have ASTM standards are not typically used by to protect homes against hail have successfully withstood procedures such as Canadian shingle manufacturers whose become clearer and better understood in nail-withdrawing and tear strength tests. products are not exported to the U.S. and, recent years, thanks greatly to more and Asphalt shingle ratings cover criteria such thus, are usually only used for shingles larger damage and insurance claims as fire and wind impact resistance. that are manufactured in the United surveys conducted on-site after major hail Fiberglass shingles are normally Class A States for use there, or that are imported events, and to increasingly more rated (the highest fire resistance), and into Canada. For an impact resistant (IR) laboratory tests, like those conducted by organic shingles are usually Class C (the roofing standard that is used by both U.S. the Institute for Business and Home Safety lowest fire resistance). and Canadian shingle manufacturers one (IBHS). Better understanding, however, must look to Underwriters Laboratories Impact resistance relates to wind damage does not necessarily translate into standard UL 2218 Impact resistance of and those shingles with a Class 4 rating increased ease of implementation of roofing systems, which is the recognized have extra adhesive strips under the tabs mitigation measures, thanks to a host of norm for asphalt roofing regularly used in which make them the most wind issues, not least of which is openness and both countries. acceptance by homeowners and insurance resistant. They also take six nails as companies. opposed to the usual four to fasten them According to Tampa-based IBHS “UL 2218 in order to increase their wind resistance. is a test that is administered by Though damage to vehicles must also be The Underwriters Laboratory (UL) test Underwriters Laboratories and involves considered, the answers there are less specifically tests against wind and hail dropping steel balls of varying sizes from clear and require further investigation. impact. Only on withstanding 60 miles per heights designed to simulate the energy hour winds for two hours will shingles win of falling hailstones. Class 4 indicates that Housing the UL certification. As for hail ratings, the the product was still functional after being A quick look at the data available on shingles have to remain unscathed under struck twice in the same spot by 2” steel recent hailstorms in Alberta indicates that a barrage of steel balls simulating hail balls. Note that this standard is while the number of damaged vehicles is stones. Consumers can check for the appropriate for flexible roofing products substantial when large hail falls, damage ASTM and UL labels on shingle packaging like asphalt shingles, and metal panels or to houses is equally as frequent. The data and in product brochures.” shingles.” also indicates that the average hail claim is According to CASMA – the Canadian roughly twice as much for a home than It has been found that asphalt shingles Asphalt Shingle Manufacturers’ for a vehicle. designated as Class 4 under the UL Association – hail can have two main standard hold up very well against 95 per Much of the discussion around mitigation effects on asphalt roofing: aesthetic and cent of all hailstorms experienced. Thus, it of hail damage centres around use of functional: “By far the most common type is highly recommended that insurers impact resistant (IR) roofing products. of damage caused by hail [is aesthetic]; replacing a hail-damaged roof, particularly small localized areas with minor loss of in areas that regularly experience As is true in the U.S., the majority of granules. This type of damage generally significant hail events, should make it homes in Canada use asphalt shingles for has little impact on the expected life of roof covering. According to www.roofery. their policy to only provide reimbursement the roof. Functional damage is where com “Asphalt shingles can be categorized for Class 4 IR roofing that meets UL 2218. there is sufficient damage to the shingles in terms of design types and constitutive The moderately higher cost over to either cause a short term leak or to elements. They can also be categorized installation of a Class 1 shingle would be reduce the life of the roof. This type of depending on their weight, mat thickness, small given the potential claims savings, damage is recognized by significant and type of filler materials. It continues: and could be reduced by an insurer’s granule loss (easily visible from the “Asphalt shingle ratings have been buying power. ground, large areas of asphalt becoming formulated by the American Society for exposed) or shingle fracture/penetration Worthy of consideration is the idea that Testing and Materials (ASTM). ASTM has which can be seen by fractures through new home builders use a Class 4 shingle set standards for both fiberglass and the back of the shingle. Generally shingle whenever a home is being built in a organic varieties of shingles. replacement is only required in severe high-risk hail zone, such as in southern Fiberglass shingles with an ASTM D 3462 cases of damage. Remember that Alberta and southern . certification and organic shingles with asphalt shingle applications provide at Other considerations include use of roof ASTM D 225 certification comply with least two layers of shingle material over systems other than asphalt, such as metal ASTM standards. To be certified to these the entire roof.” and plastic. >

4 with fabric shade systems used to shelter Conclusion open lot vehicle inventories like those The need to address the problem of found at car rental lots and auto mounting hail-related claims in Canada dealerships. Permanent car port-type could not be more acute, as the industry structures can take various shapes and will likely see more hail damage in Canada forms, and range from being very basic to going forward. This, not necessarily quite complex in design. One may see because of any projected increase in various styles and types of permanent car frequency of hail, but due to increased ports while driving through the Dallas-Fort concentration of values and growing costs In mild to moderate hail storms, damage to homes Worth area. is usually limited to roofs. However, in larger hail of replacing damaged property in such storms, extensive damage can be done to siding, Keeping cars under permanent cover places as Calgary. skylights, windows and doors. provides ideal protection. However when Large gaps currently exist in the testing of use of permanent structures is not In moderate hailstorms, it is often just the siding, vents, soffits, fascia, fenestration possible, temporary tent-like fabric roof of a home that is damaged. However etc. as well as with the implementation of covered structures, as well as custom car in larger, very destructive storms, the IR standards for same. covers or blankets such as the type used experience in Texas and elsewhere is that by owners of vintage cars, may be There are also clear gaps that need to be while roughly half the damage is related considered as alternatives. Though there filled regarding research to better protect to the roof, the other half is related to are several manufactures and sellers of car vehicles from large and damaging hail. siding, vents, soffits, fascia, skylights and covers/blankets purported to be ‘hail fenestration (i.e. windows and doors). resistant’, to-date, it is unclear if any have This being said, it is likely best for the To-date, while a significant amount of been subjected to rigorous hail testing, Canadian insurance industry to research has been conducted on roofing and currently no standards bodies have concentrate first on those measures that systems, very little has been done on published standards for such products. make the most sense, where we have the these other items, which can prove to be Several companies in the United States most knowledge, and where insurers will significant sources of damage. There is a manufacture and market fabric structures get the best return – on roofing. huge void in the science and testing, and to protect vehicles against hailstones, as Currently, we know enough to be able virtually no IR standards exist for siding, well as against the sun’s harmful UV rays. to say that IR roofing products perform vents, soffits, fasica and fenestration. Such structures can be seen at rental car markedly better than non-IR products. One consideration is to encourage use of lots (for instance, at the Dallas-Fort Worth As a result, insurers writing business in cement board over aluminum or vinyl Airport), auto manufacturing plants and high-risk hail zones need to consider siding, particularly in high-risk hail zones. car dealerships. leveraging their buying power, and An additional benefit to cement board is incentivizing their use. it’s higher resilience to fire, which makes it In such places as Texas, it is common for car dealerships to be incentivized through suitable for use in the wildland urban The next discussion, perhaps, needs to their insurance companies to use such interface (WUI) where risk of damage/loss centre around a push for IR requirements covers. Incentivizing the use of vehicle to wildfire is greatest. in building codes for homes being covers – whether permanent or temporary constructed in high-risk hail zones. Clearly, much more work needs to be – is easily done for insureds who hold done in the testing of siding, vents, large inventories of vehicles. However, it There are gaps in the research to be sure, soffits, fascia, fenestration etc., and in the may not be possible, realistic or desirable however we know enough at this stage to development of IR standards for same. to incentivize property owners to provide be able to move forward with a plan to such cover if the vehicles they protect are better utilize IR roofing products, and we Vehicles not their own, as with public parking lots know enough about where research and or employee parking lots, for example. testing is lacking to begin to work When it comes to protection of vehicles This represents a big gap that would be towards filling these gaps. against hailstorms, the simplest and most difficult to address. common form of mitigation is to get If not, Canadian insurers writing vehicles under cover prior to a storm. Perhaps more consideration may need to personal lines business in hail hazard areas Such cover can be permanent – as with be put into rigorously testing and issuing should get used to writing big cheques car ports and garages; or temporary, as a standard for custom car covers/blankets. more often.

5 New ICLR publication:

Protect your home from extreme heat

In many parts of the country, Canadians retrofitted, to protect those who reside in are experiencing more frequent and them from extreme heat. This publication extreme heat events. Temperatures is designed to assist homeowners whose sometimes soar to levels that are residences are at risk of extreme heat. dangerous to health and safety. The risk Recommendations presented here to of health impacts from extreme heat is reduce overheating of low-rise residential expected to continue rising due to structures include elements around climate change. building design, considerations for building materials, and landscaping The evidence over the past 20 or 30 years approaches. shows that the risk of death or serious health issues increases when the The information in this publication temperature rises. In particular, fatalities in provides an overview of key areas in and many urban centres across Canada often around the house and lot that may require start to increase when the temperature is attention in order to reduce the risk above 25°C, and increase significantly posed by extreme heat to a home and when the temperature is above 35°C. – hence – to its occupants. Several Some communities have even experienced measures presented in this document, a few days when the temperature has while focused on management of heat- exceeded 40°C. Over the next 25 years, related impacts, have additional benefits it is likely that many – perhaps most related to energy efficiency. – Canadians will experience high The publication can be downloaded for temperatures dangerous to their health. free at www.iclr.org Fortunately, there are actions that can be taken to ensure that new homes are designed, and existing homes are

Institute for Catastrophic Loss Reduction

Mission 20 Richmond Street East Western University To reduce the loss of life and property caused by severe weather Suite 210 Amit Chakma Building, Suite 4405 and earthquakes through the identification and support of Toronto, Ontario 1151 Richmond Street sustained actions that improve society’s capacity to adapt to, M5C 2R9 London, Ontario, Canada anticipate, mitigate, withstand and recover from natural disasters. T 416-364-8677 N6A 5B9 F 416-364-5889 T 519-661-3234 www.iclr.org F 519-661-4273 www.PIEVC.ca www.iclr.org

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