Canada Faces Record $8.5 Billion Weather Damage in 2024, Insurability at Risk

January 14, 2025
Canada Faces Record $8.5 Billion Weather Damage in 2024, Insurability at Risk
  • In 2024, Canada experienced a staggering $8.5 billion in insured damage from severe weather events, significantly exceeding the previous record of $6 billion set in 2016.

  • British Columbia endured its fourth-worst wildfire season, compounded by multiple deadly storms that caused flooding and landslides.

  • Four catastrophic weather events in July and August alone accounted for over CAN$7 billion in losses, including a significant wildfire in Jasper National Park that led to the evacuation of 25,000 people.

  • Notably, flooding in the Greater Toronto Area resulted in nearly $1 billion in insured damages, while Hurricane Debby caused $2.7 billion in losses in Quebec.

  • The most damaging incident of the year was an August hailstorm in Calgary, which inflicted approximately $3 billion in insured losses in just over an hour.

  • Jason Clark from the Insurance Bureau emphasized that climate change is making living and working in Canada increasingly risky, urging government investment in community resilience and preparedness.

  • The Insurance Bureau of Canada (IBC) cautioned that without collaboration between governments and the private sector, many areas in Canada could become uninsurable.

  • The IBC predicts that home insurance rates will rise in 2025 due to the increasing frequency and severity of climate-related disasters.

  • Ryan Ness from the Canadian Climate Institute warned that if current climate trends persist, damages could escalate to hundreds of billions of dollars annually by the century's end.

  • The IBC has stressed the urgent need for investment in infrastructure, improved land-use planning, and updated building codes to mitigate risks associated with climate change.

  • Experts warn that without decisive action to enhance community resilience, home insurance premiums are likely to continue rising, jeopardizing affordability and availability.

  • Since 2019, Canada has seen a staggering 115% increase in claims for personal property damage and a 485% rise in repair costs, leading to higher insurance premiums.

Summary based on 4 sources


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