The summer of 2024 has gone down as the most expensive season for insured severe weather losses in Canadian history. With devastating floods, wildfires, and hailstorms, it served as a harsh wake-up call about the growing toll of climate-fueled disasters. For Alberta and the rest of the country, this isn’t just a seasonal anomaly, it’s a signal that the severe weather landscape is changing, fast.
The Situation
In just July and August 2024, insured losses from severe weather events across Canada topped $7.1 billion. This surpassed the previous record year of 2016 with the Fort McMurray wildfire. Over 228,000 insurance claims were filed, more than four times the 20-year average. Alberta alone was hit by both the Jasper wildfire and a record-setting Calgary hailstorm that caused an estimated $2.8 billion in damages.
This staggering increase in both frequency and severity of events has placed unprecedented pressure on the Canadian insurance industry. The President of the Insurance Bureau of Canada Celyeste Power noted, “These events are escalating at a shocking rate and Canada is simply not prepared.”
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According to the Insurance Bureau of Canada, 3 of the top 5 costliest severe-weather seasons in Canadian history have occurred in 2022, 2023 and 2024.
- 2022: $3.6 billion in losses from multiple events.
- 2023: $3.6 billion in losses primarily from BC wildfires and Nova Scotia flooding.
- 2024: $7.1 billion in losses primarily from flooding in Southern Ontario and Quebec, Jasper wildfires, and Calgary hailstorms.
*For reference, the 2016 season is second all-time with $6.2 billion in damages, primarily from the Fort McMurray wildfires.
Severe Weather Events and the Canadian Insurance Market
Severe weather is no longer a seasonal inconvenience, it’s become a structural threat to the Canadian insurance system. In the past decade, insured losses from severe weather have soared from an average of $400 million annually to over $3 billion per year, and 2024 more than doubled that figure.
Events once considered “once-in-a-century” are now happening every few years, straining the resources of insurers and pushing the boundaries of what’s considered insurable. This rapid escalation has triggered market-wide changes, where risk models, pricing strategies, and coverage availability are all being re-evaluated in real time.
The ripple effects are being felt by homeowners, businesses, and municipalities alike. Insurers are adjusting premiums, tightening the criteria used to assess risk and set premiums, increasing deductibles and in some cases, pulling back from high-risk areas entirely.
More details on how climate change and extreme weather events are being managed by the insurance market are available here:
- The Impacts of Climate Change on Insurance
- What Canadian Insurance Companies Are Doing for Climate Change
Conclusion
With the rising frequency and cost of severe weather events across Canada, this is a very bad time to be underinsured. As risks grow and coverage becomes more complex, it’s never been more important to understand exactly what your policy protects. Whether it’s flooding, wildfire, or hail, the financial fallout from a single event can be devastating without the right insurance in place. As restrictions grow on coverage options, getting the coverage you need is of paramount importance.
If you want peace of mind knowing you’re properly covered, talk to an Armour Insurance broker today. We’ll help you navigate the changing insurance landscape and make sure you have the protection you need.
