Severe weather events cost Canadian insurers more than $2.4 billion

11:25

By: Azzat Manal

Severe weather events cost Canadian insurers more than $2.4 billion

Severe weather events and wildfires generated more than $2.4 billion in insured losses in Canada over the past year, highlighting the growing financial pressure that extreme weather is placing on households, communities and the insurance sector.

According to data from the Insurance Bureau of Canada, the year was marked by a series of costly weather disasters across the country. Among them were a major ice storm that affected Ontario and Quebec in late March, wildfires in May and a powerful hailstorm that struck Calgary, Alberta, in July.

Severe storms also swept across the Prairie provinces in August, causing significant damage, particularly to vehicles in Brooks, Alberta. Later in the year, a series of atmospheric river events brought heavy rainfall and flooding to British Columbia, adding further pressure to insured losses.

The ice storm in Ontario and Quebec was among the most expensive events, generating preliminary insured losses of about $490 million. Wildfires affecting communities including Flin Flon and La Ronge resulted in approximately $300 million in insured damage, while the Calgary hailstorm generated losses estimated at $160 million.

Storms across the Prairie provinces accounted for another $235 million in insured losses, while the atmospheric river events in British Columbia caused an estimated $90 million in damage covered by insurance.

The figures form part of a broader trend showing a sharp increase in the cost of weather-related disasters in Canada. The Insurance Bureau of Canada estimates that insured losses from severe weather events and wildfires totaled about $14 billion between 2006 and 2015, after adjusting for inflation.

That figure climbed to approximately $37 billion between 2016 and 2025, nearly three times the amount recorded during the previous decade. The increase reflects the growing scale and frequency of costly disasters affecting different parts of the country.

Insurance Bureau of Canada President and Chief Executive Officer Celyeste Power said extreme weather events are becoming increasingly significant in both size and impact. She called for greater investment in measures that can improve the ability of communities and households to withstand disasters.

The insurance industry has increasingly emphasized the importance of reducing exposure to climate-related risks while maintaining access to affordable coverage. Preventive measures can include stronger infrastructure, improved emergency planning and construction standards designed to withstand severe weather.

The Insurance Bureau of Canada has also urged governments to invest in flood protection infrastructure and strengthen land-use planning rules to discourage residential development in areas exposed to flood risks.

Improving the resilience of buildings and communities, the bureau argues, could help reduce future disaster costs while protecting homeowners and supporting the long-term availability and affordability of insurance across Canada.