Catastrophic summer weather leads to shocking number of insurance claims

Record-breaking summer for catastrophic weather events

Damaging weather events like floods, wildfires, hail and windstorms, and heatwaves represent an escalating threat to lives and property across Canada.

The IBC CEO urges all levels of government to commit to three decisions: 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,” she said.

Furthermore, she said all levels of government must prioritise assistance to help Canadian communities and families reduce risk and protect their homes, so they are less vulnerable to flooding and wildfire. They also need to stop building and rebuilding on flood plains and areas prone to wildfire. This involves investing in disaster mitigation including upgrades to stormwater infrastructure, and rolling out programs to fire- and flood-proof homes.

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Looking ahead to the impact of severe weather

Earlier this year, the IBC reported that severe weather in 2023 caused over $3.1 billion in insured damage across Canada.

Insured losses related to severe weather in Canada now routinely exceeds $2 billion annually. By comparison, between 2001 and 2010, Canadian insurers averaged $701 million a year in losses related to severe weather.

“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,” Power said.

"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."

Sources

1. Insurance Bureau of Canada: Four Catastrophic summer events lead to record number of insurance claims (Sept 4, 2024)