Severe weather events affected hundreds of thousands of Canadians and continue to put pressure on home insurance premiums: IBC
Toronto, ON (Mar. 3, 2025) – In 2024, for the first time in Canadian history, insured damage caused by severe weather events surpassed $8 billion, according to CatIQ. The tally shattered the previous record of $6 billion from 2016, following the Fort McMurray wildfires. The 2024 total is nearly triple the total insured losses recorded in 2023 and 12 times the annual average of $701 million in the decade between 2001 and 2010.[1]
“Sadly, beyond the staggering financial losses are hundreds of thousands of Canadians whose lives and livelihoods have been upended,” said Celyeste Power, President and CEO, Insurance Bureau of Canada (IBC). “Canada’s property and casualty insurers have been there every step of the way, and continue to be on the ground, helping their customers rebuild and recover. The industry is doing its part, but it’s time for governments to take decisive action to protect Canadians from these escalating and dangerous events.”
The summer of 2024 stands out as the most destructive season in Canadian history for insured losses due to wildfires, floods and hailstorms. In just two months, July and August, four catastrophic weather events resulted in over $7 billion in insured losses and more than a quarter of a million insurance claims – 50% more than Canadian insurers typically receive in an entire year.
While the single most-destructive weather event in 2024 was the August hailstorm in Calgary, Alberta, that caused $3 billion in insured losses in just over an hour, flooding continued to cause significant damage in nearly every region across the country.
As we watch the devastating wildfires in California where insurability of homes is at real risk, Canada’s property insurers are raising the alarm that regions of Canada could potentially face similar challenges. While insurance covering wildfires remains widely available, the increased frequency and severity of weather related losses continues to create claims cost pressures that will impact the cost of insurance.
With severe weather-related losses continuing to escalate exponentially across our country, IBC is stressing the disproportionate impact these catastrophic events are having on home insurance costs. Since 2019, Canada has experienced a 115% increase in the number of claims for personal property damage and a 485% increase in the costs for repairing and replacing personal property.
“Canada is clearly becoming a riskier place to live, work and insure. As insurers price for risk, this increased risk is now impacting insurance affordability and availability,” said Craig Stewart, Vice-President, Climate Change and Federal Issues, IBC. “Canadian governments must be more proactive to properly manage and mitigate risk. Governments need to invest in infrastructure that defends against floods, adopt land-use planning rules that ensure homes are not built on flood plains, facilitate FireSmart in communities in high-risk wildfire zones and implement long-delayed building codes that better protect homes and livelihoods.”
Noteworthy severe weather events in 2024 include the Calgary hailstorm, remnants of Hurricane Debby in Quebec and the Jasper Wildfire in August, flooding in the Greater Toronto Area (GTA) in July and August, a deep freeze in Western Canada in January, and severe storms in southern British Columbia in October.
Largest Severe Weather Events in 2024
- January 12–15: Western Canada deep freeze – $180 million
- May 16: Manitoba hailstorms – $60 million
- June 23: Saskatchewan severe storms – $135 million
- July 15–16: Toronto and GTA flash floods – $990 million
- July 22–August 17: Jasper wildfire – $1.1 billion
- August 5: Calgary hailstorm – $3 billion
- August 9–10: Quebec – Remnants of Hurricane Debby – $2.7 billion
- August 13–September 16: GTA and southern Ontario flooding – $110 million
- October 18–20: Southern BC storms – $120 million
Canada’s Top 10 Highest Insured Severe-Weather Loss Years on Record
(loss and adjusted expenses in 2023 dollars)
| Rank | Year | Total loss ($ billion) | Notable severe weather events |
|---|---|---|---|
| 1 | 2024 | 8.55 | Calgary hailstorm, Jasper wildfire, remnants of Hurricane Debby, Greater Toronto Area (GTA) floods |
| 2 | 2016 | 6.20 | Fort McMurray, Alberta, fire |
| 3 | 2013 | 4.03 | Alberta floods, Greater Toronto Area (GTA) floods, GTA ice storm |
| 4 | 2022 | 3.61 | Multiple events |
| 5 | 2023 | 3.61 | Nova Scotia floods, Okanagan and Shuswap, BC, area wildfires |
| 6 | 1998 | 2.94 | Quebec ice storm |
| 7 | 2021 | 2.56 | Calgary hailstorm, British Columbia floods |
| 8 | 2020 | 2.52 | Fort McMurray flood, Calgary hailstorm |
| 9 | 2018 | 2.49 | Multiple events: Ontario and Quebec rainstorms and windstorms |
| 10 | 2011 | 2.05 | Slave Lake, Alberta, fire and windstorm |
Sources 1983–2007: IBC, PCS Canada, Swiss Re, Deloitte. 2008–2024: CatIQ
Notes
1. Values in 2024 $CAD
The amount of insured damage is an estimate provided by CatIQ (www.CatIQ.com) under licence to IBC.
About CatIQ
Toronto-based Catastrophe Indices and Quantification Inc. (CatIQ) is a subsidiary of Zurich-based PERILS A.G. and delivers detailed analytical and meteorological information on Canadian natural and man-made catastrophes. Through its online subscription-based platform, CatIQ combines comprehensive insured loss and exposure indices and other related information to better serve the needs of the insurance / reinsurance / ILS industries, public sector and other stakeholders. CatIQ was established in 2014 with the support of the overwhelming majority of the Canadian insurance and reinsurance industry and is widely recognized as the most reliable source of catastrophe loss information in Canada. For more information, please visit catiq.com.
About Insurance Bureau of Canada
Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up the vast majority of Canada’s highly competitive property and casualty (P&C) insurance market. As the leading advocate for Canada’s private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow. IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses.
For more information, visit www.ibc.ca. If you have a question about home, auto or business insurance, contact IBC’s Consumer Information Centre at 1-844-2ask-IBC.
Source: Insurance Bureau of Canada (IBC)
Tags: CatIQ, Insurance Bureau of Canada (IBC), Natural Catastrophes, natural disaster losses, record-breaking losses, severe weather
