Protecting Our Tomorrow As Severe Weather Escalates
By Hanna Beydoun, Insurance Bureau of Canada —
Severe weather is getting worse. And we are all paying the price.
That’s why Canada’s home, auto and business insurers are leading the way, advocating for solutions and helping Canadians adapt. It’s all part of our plan to protect the things we love.
Canada’s home, auto and business insurers are there for their customers after a disaster, helping people put their lives back together. The insurance industry is foundational to the strength, resilience and success of the Canadian economy by helping minimize financial losses.
The insurance industry employs over 140,000 people in communities across the country. They stand ready to help customers recover in the event of severe weather – and to help minimize the risks before severe weather hits.
Crucially, there are a number of steps you can take to protect yourself and your property now. Learn more about each category of risk from Insurance Bureau of Canada:
- Fire and Wildfire Protection: Wildfires and fires are a real and present danger. Do what you can to help mitigate risk and protect your family, home and business.
- Water Damage and Flood Protection: Flooding and related sewer backup damage is costly for homeowners, businesses, municipalities and insurance companies. But there are steps you can take to help reduce your risk.
- Hail Protection: Intense hailstorms are becoming more frequent and can cause significant damage. Take action to help prevent damage to your home, car and business.
- Wind and Tornado Protection: Tornado season is typically between March and October, with peak activity during late June and early July. Plan ahead to protect your family, home and business.
Severe weather is affecting hundreds of thousands of Canadians
Severe weather losses surpassed $8 billion in 2024, for the first time ever. Canadians contended with flooding in the Greater Toronto Area, a wildfire in Jasper, a hailstorm in Calgary, the remnants of Hurricane Debby in Quebec and a handful of smaller events. Beyond the financial losses, hundreds of thousands of lives were disrupted. Canada’s home, auto and business insurers are there for Canadians, helping customers repair and rebuild after severe weather hits.
Since 2019, Canada has experienced a 115% increase in the number of claims for personal property damage and a 485% increase in the cost of repairing and replacing personal property. This increased risk is now impacting insurance affordability and availability.
But there are actions insurers are taking, actions governments can take, and actions homeowners can take to mitigate these losses and better protect communities across the country.
What insurers are doing to help Canadians adapt to the impacts of severe weather
Canada’s insurers are now close to paying out more in claims for a single severe weather event than the federal government has allocated to adapting to severe weather over the past decade. Instead of the government making a small investment in resilience and disaster preparedness, Canadian families and communities are facing higher costs.
The property and casualty (P&C) insurance industry is playing a leading role in helping communities adapt to severe weather and has been calling on all orders of government to take immediate action to mitigate the impacts of natural catastrophes and better protect communities. Canada’s insurers have stepped up to increase residents’ financial protection by:
- Creating a new category of insurance – overland flood coverage – to financially protect Canadians who live in areas of increasing flood risk
- Working in partnership with all orders of government – sharing data, offering expertise, and advocating for policy changes and financial investments that will help protect Canadians from the immediate and emerging effects of severe weather
- Through Climate Proof Canada, advocating for the National Adaptation Strategy, including helping to develop the disaster resilience goals, objectives and targets to address the impact of severe weather events on communities and households
- Helping consumers to rebuild to Build Back Better standards following a severe weather event in some policies
- Advocating for the creation of a national flood insurance program that, once implemented, will ensure that overland flood insurance is available for all who need it, including those whose homes are at severe risk of flood damage
- Investing in disaster prevention research to help consumers, governments and stakeholders understand how to better protect their homes, businesses and communities. Here are a few examples through the Institute for Catastrophic Loss Reduction (ICLR):
Read the full interactive article from Insurance Bureau of Canada for more information and tips on how we can build a more resilient Canada.
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)