Insurers are increasingly facing the financial impact of severe weather events in Alberta, where floods, hail, extreme wind, and wildfires have driven rising claims costs.
To address this, Aviva Canada has partnered with Habitat for Humanity and the Institute for Catastrophic Loss Reduction on a pilot project that integrates climate-resilient construction into new housing developments, aiming to reduce the frequency and severity of insurance claims.
Aviva is investing $400,000 to support two housing projects: a 24-unit affordable development in Chestermere with hail-resistant features and a 92-unit build in Calgary’s Belmont community designed with wind- and hail-resistant materials. The insurer’s involvement reflects a growing trend in risk mitigation, where proactive investment in resilient structures can lower potential payouts and ease pressure on premiums.
Shauna Mamini, Aviva’s assistant vice-president of property portfolio and exposure management, highlighted that building homes with enhanced weather-resistant features protects not only residents but also the insurer’s balance sheet by reducing the likelihood and cost of claims. Alberta has historically experienced some of Canada’s costliest insured disasters, including the 2024 Calgary hailstorm, which caused $3.1 billion in insured damage, underlining the financial stakes for insurers.
The pilot demonstrated that climate-resilient features, such as Class 4 hail-rated shingles, hurricane ties, reinforced siding, triple-pane windows, and hail-resistant roof vents, can be incorporated without significantly increasing construction costs. Chris Williams, president of Avalon Master Builder, emphasized that resilient builds can help maintain insurance affordability by reducing future claims, which otherwise drive premiums higher.
Habitat for Humanity Southern Alberta is also incorporating these resiliency measures into its Chestermere project. Gerrad Oishi, the organization’s CEO, noted that improving home durability provides an additional layer of security for vulnerable families while reducing long-term insurance risks.
The initiative illustrates how insurers can proactively influence building standards to manage risk exposure, demonstrating the value of collaboration between insurers, developers, and community organizations in mitigating climate-driven claims. By funding and supporting resilient construction, Aviva aims to lower future insurance losses, enhance affordability, and protect both homeowners and its underwriting portfolio.
