Canada’s most destructive summer for insured weather damages

Summer 2024 weather damage insured losses surpass $7 billion

According to the Insurance Bureau of Canada (IBC), the summer of 2024 recorded over $7 billion in insured losses from severe weather events.

This makes it the most destructive season in Canadian history for insured damages due to natural disasters, as reported by Catastrophe Indices and Quantification Inc. (CatIQ).

Between July and August alone, these losses surpassed Canada’s previous record year, pushing the year-to-date total to over $7.7 billion.

“Relentless storms, fires, and floods have resulted in approximately 228,000 insurance claims – a 406% increase compared to the 20-year average,” said Celyeste Power, President and CEO of IBC.

Costliest events of summer 2024

Summer 2024 included several catastrophic events:

• Toronto and Southern Ontario experienced severe flooding, causing $940 million in damages.
• Jasper, Alberta, faced a wildfire with $880 million in insured losses.
• A hailstorm in Calgary resulted in $2.8 billion in damages, the costliest single event.
• Quebec floods contributed $2.5 billion in damages.

These figures demonstrate a dramatic rise in both frequency and financial impact, highlighting the need for immediate action, as per IBC’s data.

Call for action on climate adaptation

IBC reiterated its decade-long appeal to governments for a unified approach to climate adaptation.

“Insurers are now paying out more in claims for a single event than the $1.9 billion that the federal government has allocated to climate adaptation over the past decade,” said Craig Stewart, IBC’s Vice-President of Climate Change and Federal Issues.

The federal government’s National Adaptation Strategy, launched in June 2023, has yet to meet its goals. Municipalities continue to build in flood-prone and wildfire-risk areas, increasing future vulnerabilities.

Insured losses outpacing past trends

Comparing past records highlights the unprecedented scale of 2024’s losses:

• 2016, driven by the Fort McMurray wildfire, totaled $6.2 billion.
• 2013 saw $4 billion in losses from floods in Alberta and Toronto.
• 2022 and 2023 had total losses of $3.6 billion each from multiple events.

2024’s year-to-date losses already exceed these years by a wide margin, signaling a steep upward trend.

Canada’s most destructive summer for insured weather damages: Summary

The summer of 2024 marked a new high in insured losses from severe weather events in Canada, surpassing $7 billion. Major incidents included flooding in Ontario and Quebec, a wildfire in Jasper, and a hailstorm in Calgary. Insurers and the IBC are calling for government collaboration to address climate risks, improve disaster mitigation, and support resilient building practices to curb escalating damages. The 2024 losses highlight the growing impact of climate-fueled disasters on Canadian communities.