For the first time in Canadian history, insured losses from severe weather events surpassed $8 billion in 2024, with Alberta playing a significant role in the record-breaking total. The Calgary hailstorm in August, described as the most destructive event of the year, caused $3 billion in insured damages in just over an hour.
This event contributed to a year of unprecedented losses, surpassing the $6 billion record set in 2016 after the Fort McMurray wildfires. The report, released by Catastrophe Indices and Quantification Inc. (CatIQ), revealed that the 2024 total was nearly triple the $2.56 billion recorded in 2023 and 12 times the annual average of $701 million between 2001 and 2010.
"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 of the 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 was Canada's most destructive on record, with wildfires, floods, and hailstorms dominating the season. In July and August alone, four catastrophic events resulted in over $7 billion in insured losses and more than 250,000 insurance claims—50 per cent more than insurers typically handle in an entire year.
Alberta experienced significant losses, with the Jasper Wildfire in August causing $1.1 billion in damages. Earlier in the year, a deep freeze across Western Canada in January resulted in $180 million in damages. Nationally, flooding, hailstorms, and wildfires were widespread, with notable events including the remnants of Hurricane Debby in Quebec causing $2.7 billion in damages and flooding in the Greater Toronto Area in July and August, which added $990 million in losses.
Craig Stewart, Vice President of Climate Change and Federal Issues at IBC, highlighted the increasing risks Canadians face.
"Canada is clearly becoming a riskier place to live, work, and ensure. As insurers price for risk, this increased risk is now impacting insurance affordability and availability," he said. Stewart called on governments to invest in infrastructure to defend against floods, adopt land-use planning rules to keep homes off floodplains, support FireSmart programs in wildfire-prone communities, and implement updated building codes to protect homes.
The rising cost of home insurance reflects the growing impact of severe weather. Since 2019, personal property damage claims have risen by 115 per cent, while the cost of repairing and replacing property has increased by 485 per cent.
While insurance covering wildfires remains widely available, the frequency and severity of weather-related events are creating claims cost pressures, raising concerns about affordability.
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