Insurance industry addressing 228,000 claims, a 406% increase compared to previous 20-year average
Canada’s home, auto and business insurers are reporting the most challenging summer on record for damage from weather events and natural disasters. The flooding in Toronto and other parts of southern Ontario, the Jasper wildfire, the Calgary hailstorm and flooding in regions of Quebec, have resulted in approximately 228,000 insurance claims. In comparison, last year, insurers reported 113,000 claims in July and August and 160,000 claims for the entire year.
“This summer has been the most challenging in history for the hundreds of thousands of Canadians across the country who were impacted by these storms and wildfires. The insurance industry is there: we are on-the-ground in Alberta, Ontario and Quebec, assisting our customers as they put their lives back together and we’ll be there throughout the recovery and rebuilding,” said Celyeste Power, President and CEO, Insurance Bureau of Canada (IBC). “These four catastrophic weather events, which occurred in over the span of four weeks this summer, have resulted in more claims in one summer than insurers have reported in any summer over the last 20 years. While insurers continue to assist their customers with financial support, the sheer volume of claims, coupled with skilled labour shortages and continued strains in Canada’s supply chain, means that the claims process will take time.”
The surging frequency and severity of damaging weather events and natural disasters – floods, wildfires, hail and windstorms, and heatwaves – represent an escalating threat to lives and property across Canada.
“All orders of government must commit to three key things that will help better protect communities and families, ensuring they are better able to withstand the impacts of climate-fuelled catastrophes,” added Power. “First, the federal government must commit the necessary resources this fall to stand up the National Flood Insurance Program for high-risk households with the support of the provinces and territories. This is the single, most-important step the government can take to better protect homeowners from the financial risks of climate change."
“Secondly, governments at all levels must prioritize assistance to help Canadian communities and families reduce risk and protect their homes, so they are less vulnerable to flooding and wildfire,” continued Power. “Finally, governments need to make the hard choices to stop building and rebuilding on flood plains and areas prone to wildfire, invest in disaster mitigation including upgrades to stormwater infrastructure, and roll out programs to fire- and flood-proof homes. As Canada embarks on one of the most ambitious housing plans in its history, it is important to remember that the most expensive property is the one you have to build twice.”
As reported by IBC earlier this year, severe weather in 2023 caused over $3.1 billion in insured damage across Canada and following these four significant events, 2024 is shaping up to be another costly year. IBC is continuing to engage with the federal and provincial governments on ways to improve the climate resilience of communities across the country. Insured losses related to severe weather in Canada now routinely exceed $2 billion annually. By comparison, between 2001 and 2010, Canadian insurers averaged $701 million a year in losses related to severe weather.
Additional resources
IBC has a suite of helpful resources for both Canadians and governments, which can be found here:
Questions about a claim?
IBC is encouraging consumers with questions about their claim to call IBC’s Consumer Information Centre at 1-844-2ask-IBC (1-844-227-5422).
