Four catastrophic summer events led to record number of insurance claims

Insurance industry addressing 228,000 claims, a 406% increase compared to previous 20-year average

Toronto, ON (Sept. 4, 2024) – Canada’s home, auto and business insurers are reporting the most challenging summer on record for damage from weather events and natural disasters. The flooding in Toronto and other parts of southern Ontario, the Jasper wildfire, the Calgary hailstorm and flooding in regions of Quebec, have resulted in approximately 228,000 insurance claims. In comparison, last year, insurers reported 113,000 claims in July and August and 160,000 claims for the entire year.

“This summer has been the most challenging in history for the hundreds of thousands of Canadians across the country who were impacted by these storms and wildfires. The insurance industry is there: we are on-the-ground in Alberta, Ontario and Quebec, assisting our customers as they put their lives back together and we’ll be there throughout the recovery and rebuilding,” said Celyeste Power, President and CEO, Insurance Bureau of Canada (IBC). “These four catastrophic weather events, which occurred in over the span of four weeks this summer, have resulted in more claims in one summer than insurers have reported in any summer over the last 20 years. While insurers continue to assist their customers with financial support, the sheer volume of claims, coupled with skilled labour shortages and continued strains in Canada’s supply chain, means that the claims process will take time.”

The surging frequency and severity of damaging weather events and natural disasters – floods, wildfires, hail and windstorms, and heatwaves – represent an escalating threat to lives and property across Canada.

“All orders of government must commit to three key things that will help better protect communities and families, ensuring they are better able to withstand the impacts of climate-fuelled catastrophes,” added Power. “First, the federal government must commit the necessary resources this fall to stand up the National Flood Insurance Program for high-risk households with the support of the provinces and territories. This is the single, most-important step the government can take to better protect homeowners from the financial risks of climate change.”

“Secondly, governments at all levels must prioritize assistance to help Canadian communities and families reduce risk and protect their homes, so they are less vulnerable to flooding and wildfire,” continued Power. “Finally, governments need to make the hard choices to stop building and rebuilding on flood plains and areas prone to wildfire, invest in disaster mitigation including upgrades to stormwater infrastructure, and roll out programs to fire- and flood-proof homes. As Canada embarks on one of the most ambitious housing plans in its history, it is important to remember that the most expensive property is the one you have to build twice.”

As reported by IBC earlier this year, severe weather in 2023 caused over $3.1 billion in insured damage across Canada and following these four significant events, 2024 is shaping up to be another costly year. IBC is continuing to engage with the federal and provincial governments on ways to improve the climate resilience of communities across the country. Insured losses related to severe weather in Canada now routinely exceed $2 billion annually. By comparison, between 2001 and 2010, Canadian insurers averaged $701 million a year in losses related to severe weather.

Additional resources

IBC has a suite of helpful resources for both Canadians and governments:

Questions about a claim?

IBC is encouraging consumers with questions about their claim to call IBC’s Consumer Information Centre at 1-844-2ask-IBC (1-844-227-5422).

About Insurance Bureau of Canada

Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up the vast majority of Canada’s highly competitive property and casualty (P&C) insurance market. As the leading advocate for Canada’s private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow. IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses.

For more information, visit www.ibc.ca. If you have a question about home, auto or business insurance, contact IBC’s Consumer Information Centre at 1-844-2ask-IBC.

Source: Insurance Bureau of Canada (IBC)

Tags: claims, Insurance Bureau of Canada (IBC), Natural Catastrophes, natural disaster losses, severe weather