For the first time in Canadian history, severe weather events in 2024 surpassed $8 billion in insurance claims.
According to Catastrophe Indices and Quantification Inc., this shattered the previous record of $6 billion following the Fort McMurray, Alta., wildfires.
The Oct. 18 to 20, southern B.C. storms were the costliest event in the province with $120 million in claims.
The Insurance Bureau of Canada (IBC) said intense rainfall and wind — which prompted a local state of emergency in North Vancouver on Oct. 20 — resulted in overflowing rivers, sewer backups, and flooding on roads and in parking garages and basements.
Four people were killed during the storms.
“Sadly, beyond the staggering financial losses are hundreds of thousands of Canadians whose lives and livelihoods have been upended,” Celyeste Power, president and CEO of the Insurance Bureau of Canada, said.
“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 single most destructive event in Canada last year was the August hailstorm in Calgary, which caused $3 billion in insured losses in just over one hour.
Since 2019, IBC said Canada has experienced a 115 per cent increase in the number of claims for personal property damage and a 485 per cent increase in the costs for repairing and replacing personal property.
It warns that the increased frequency and severity of weather-related losses will continue to raise insurance costs.
“Canada is clearly becoming a riskier place to live, work and insure. As insurers price for risk, this increased risk is now impacting insurance affordability and availability,” said Craig Stewart, vice-president, climate change and federal issues at IBC.
“Canadian governments must be more proactive to properly manage and mitigate risk. Governments need to invest in infrastructure that defends against floods, adopt land-use planning rules that ensure homes are not built on flood plains, facilitate FireSmart in communities in high-risk wildfire zones and implement long-delayed building codes that better protect homes and livelihoods.”
Other events that made the list included the Jasper wildfire in August, flooding in the Greater Toronto Area in July and August and a deep freeze in Western Canada in January.
