New Statistics Canada report confirms extreme weather reshaping Canada’s home insurance market
Insurance Bureau of Canada calls on governments to take immediate action on resilience
Ottawa, ON (June 30, 2026) – A new report by Statistics Canada underscores a growing reality for Canadians: Extreme weather is fundamentally reshaping the country’s home insurance market, driving higher claims costs, contributing to increasing premiums and leaving too many households exposed to the risk of catastrophic damage from extreme weather.
The study, “Extreme weather impacts on consumers and insurers in Canada, December 2019 to December 2025: An updated analysis,” finds that extreme weather events are becoming more frequent, more severe and more costly, placing sustained pressure on Canadian insurers and homeowners alike.
Among the report’s highlights:
- Claims costs have surged dramatically. Since 2009, insurers have paid nearly $2 billion per year on average in catastrophic weather-related claims, up sharply from about $400 million annually between 1983 and 2008.
- In recent years, annual insured losses have reached unprecedented levels, including $3.4 billion in 2022 and a staggering $9.4 billion in 2024.
- Insurance premiums have increased faster than inflation in recent years, reflecting the growing cost of rebuilding homes and the escalating frequency of catastrophic events.
“Natural disasters are reshaping the home insurance landscape for Canadians from coast-to-coast,” said Liam McGuinty, Vice-President, Federal Affairs, Insurance Bureau of Canada (IBC). “The increased frequency and severity of extreme weather events are driving up claims costs and putting pressure on home insurance premiums across the country.”
The report highlights that natural catastrophes are no longer rare events, with four of the last five years now ranking among the 10 costliest on record.
Without stronger risk reduction measures, IBC warns that Canadians will continue to face rising insurance costs and growing exposure to loss.
In light of the report’s findings, IBC is re-iterating its call for all orders of government to take immediate steps to reduce Canadians’ exposure to extreme weather events, including:
- Providing incentives for homeowners to invest in practical, affordable measures that reduce extreme weather damage and recovery costs.
- Building new homes away from high-risk flood and wildfire zones by strengthening land use planning and restricting development in areas at highest risk.
- When building in high-risk areas is unavoidable, requiring cost-effective, community-level mitigation measures, such as flood protection infrastructure and measures recommended by the comprehensive FireSmart program that are designed to help reduce the risk of wildfire damage.
- Investing in resilient infrastructure to protect communities from risks such as flooding.
- Strengthening building codes and construction standards to ensure new homes are built with resilient features that reflect current and future climate conditions.
- Educating consumers by providing clear, accessible information to empower homeowners, renters and businesses to make informed decisions and take practical steps to mitigate their risk.
“Reducing cost pressures in the home insurance market means confronting the root cause: rising risk,” said McGuinty. “That requires a decisive shift to adaptation–investing in resilience, building in safer ways and locations, and taking action now to curb the growing damage from extreme weather.”
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.
Source: Insurance Bureau of Canada (IBC)
Tags: home insurance, Insurance Bureau of Canada (IBC), Natural Catastrophes, resilience, severe weather, Statistics Canada