Insurance companies working on Fort McMurray wildfire claims make mistakes, says industry association
David Thurton | CBC News | Posted: September 13, 2016 1:00 PM | Last Updated: September 13, 2016
'They want their life back. And as an insurance industry we fully understand that'
The Insurance Bureau of Canada admits insurance companies could be making mistakes when they are processing claims from their policyholders in Fort McMurray.
"We don't always get it right. I'd be the first to admit that," said Bill Adams, the insurance bureau's vice-president, Western and Pacific region.
"But it's not because there's any intention of getting it wrong. It's the reality that our industry is facing with 45,000 claims to manage just out of Fort McMurray..
"That's a challenge for our industry. We've never faced all that volume all at once."
Almost five months after the Fort McMurray wildfire, homeowners have grown frustrated about the insurance claims process. Several families have told CBC News their insurance companies have been rude, unprofessional, difficult to contact or have short-changed them on loss settlements.
The Fort McMurray wildfire was Canada's costliest insured disaster. The insurance bureau pegged insured losses at $3.58 billion.
Getting lots of calls
The Insurance Bureau of Canada is the national industry association representing Canada's private home, auto and business insurance companies.
Beginning in June, it saw a surge in the number of calls it was receiving — so much that in the early days of the wildfire response it had to quadruple the size of its call-centre staff. The association declined to provide information on how many calls it has been receiving or how many staffers usually answer phones.
Today, the insurance bureau is back to normal staffing levels and the call volume has dropped. However, the length of calls has increased "dramatically" from a previous average of 10-15 minutes as policyholders ask specific questions.
"As time goes on, people are feeling a lot more stressed," Adams said. "They want answers.
"They want resolution to the situation. They want their life back. And as an insurance industry we fully understand that."
'Policyholders have rights"
The association is highlighting the resources people can rely on if they feel their insurance company has made mistakes fulfilling their policy.
It recommends:
- Complaining to your insurer's ombudsperson.
- Contacting the General Insurance OmbudService, a national organization that promotes fairness in insurance
- Reaching out to a national or provincial superintendent of insurance
Adams said these provincial and national organizations act as a "check and balance," and can help insurers get the action they need.