Insured catastrophe losses in Canada reached a record C$8.5 bn ($5.9 bn) in 2024, nearly tripling the prior year’s total and standing 12 times higher than the annual average of C$701 mn recorded in the first decade of the 21st century. This data comes from Catastrophe Indices and Quantification (CatIQ) and the Insurance Bureau of Canada. Beinsure has highlighted the key insights from the IBC report.
Since 2020, five of the eight largest annual loss years for Canadian insurers have occurred. Losses in 2024, driven by nine major events, surpassed the C$6 bn record set in 2016 during the Fort McMurray wildfires.
Four events during the summer accounted for C$7.12 bn of the year’s total losses. These included unprecedented rain and flooding in Toronto and Montreal, along with wildfire and hail in Alberta, according to CatIQ and the IBC.
Key Takeaways
- Record Losses in 2024: Insured catastrophe losses in Canada reached a record C$8.5 bn ($5.9 bn), tripling the prior year’s total and standing 12 times higher than the early 2000s’ annual average.
- Concentration of Events: Four major summer events accounted for C$7.12 bn, including catastrophic flooding in Toronto and Montreal, and a $3 bn hailstorm in Calgary.
- Increasing Claims and Costs: Over 250,000 claims were filed for these events, 50% more than the annual average, highlighting the increasing frequency and severity of severe weather.
- Rising Challenges for Wildfire Insurance: While wildfire coverage remains available, escalating claims costs are pushing premiums higher and raising affordability concerns.
- Call for Climate Defense: Insurers and government leaders emphasize the need for increased investments in flood-resilient infrastructure, land-use planning, and wildfire risk reduction to address growing climate risks.
The IBC reported that insurance carriers processed over 250,000 claims from these four events, 50% higher than the annual average. The most expensive single event was a severe storm in Calgary, Alberta, causing C$3 bn in losses within just over an hour. Nationwide, flooding inflicted widespread damage in almost every region.
Insured Catastrophe Losses in Canada, 1994-2024

Wildfire risks also remain a pressing concern. The IBC noted that while wildfire insurance is still widely available, the rising frequency and severity of weather-related disasters are pressuring claims costs, potentially impacting premiums.
Sadly, beyond the staggering financial losses are hundreds of thousands of Canadians whose lives and livelihoods have been upended
Celyeste Power, President and CEO, Insurance Bureau of Canada
“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,” said Celyeste Power.
Insured Damage in Canada in 2024

The summer of 2024 stands out as the most destructive season in Canadian history for insured losses due to wildfires, floods and hailstorms. In just two months, July and August, four catastrophic weather events resulted in over C$7 bn in insured losses and more than a quarter of a million insurance claims – 50% more than Canadian insurers typically receive in an entire year.
While the single most-destructive weather event in 2024 was the August hailstorm in Calgary, Alberta, that caused $3 billion in insured losses in just over an hour, flooding continued to cause significant damage in nearly every region across the country.
As we watch the devastating wildfires in California where insurability of homes is at real risk, Canada’s property insurers are raising the alarm that regions of Canada could potentially face similar challenges.
While insurance covering wildfires remains widely available, the increased frequency and severity of weather related losses continues to create claims cost pressures that will impact the cost of insurance.
Largest Severe Weather Events in 2024
- January 12–15: Western Canada deep freeze – C$180 mn
- May 16: Manitoba hailstorms – C$60 mn
- June 23: Saskatchewan severe storms – C$135 mn
- July 15–16: Toronto and GTA flash floods – C$990 mn
- July 22–August 17: Jasper wildfire – C$1.1 bn
- August 5: Calgary hailstorm – C$3 bn
- August 9–10: Quebec – Remnants of Hurricane Debby – C$2.7 bn
- August 13–September 16: GTA and southern Ontario flooding – C$110 mn
- October 18–20: Southern BC storms – C$120 mn
Other significant loss years include 2013, with C$4.03 bn in losses; 1998, with C$2.94 bn; 2018, with C$2.49 bn; and 2011, with $2.05 bn. Two events in 2024—Calgary’s hailstorm and Hurricane Debby remnants in Quebec—each exceeded the losses from the 10th largest loss year.
Canada’s Top 10 Insured Severe-Weather Loss Years on Record
Rank | Year | Total loss (C$ bn) | Notable severe weather events |
1 | 2024 | 8.55 | Calgary hailstorm, Jasper wildfire, remnants of Hurricane Debby, Greater Toronto Area (GTA) floods |
2 | 2016 | 6.20 | Fort McMurray, Alberta, fire |
3 | 2013 | 4.03 | Alberta floods, Greater Toronto Area (GTA) floods, GTA ice storm |
4 | 2022 | 3.61 | Multiple events |
5 | 2023 | 3.61 | Nova Scotia floods, Okanagan and Shuswap, BC, area wildfires |
6 | 1998 | 2.94 | Quebec ice storm |
7 | 2021 | 2.56 | Calgary hailstorm, British Columbia floods |
8 | 2020 | 2.52 | Fort McMurray flood, Calgary hailstorm |
9 | 2018 | 2.49 | Multiple events: Ontario and Quebec rainstorms and windstorms |
10 | 2011 | 2.05 | Slave Lake, Alberta, fire and windstorm |
Additional losses in 2024 included C$1.1 bn from a wildfire in Jasper National Park, along with events such as a January deep freeze, May hailstorms in Manitoba, and October storms in Southern British Columbia.
With severe weather-related losses continuing to escalate exponentially across our country, IBC is stressing the disproportionate impact these catastrophic events are having on home insurance costs. Since 2019, Canada has experienced a 115% increase in the number of claims for personal property damage and a 485% increase in the costs for repairing and replacing personal property.
Investments in Flood-Resilient Infrastructure

Craig Stewart, IBC vice president of climate change and federal issues, urged Canadian governments to act more proactively. He recommended investments in flood-resilient infrastructure, stricter land-use planning to prevent building on flood plains, the adoption of FireSmart practices in wildfire-prone communities, and the implementation of updated building codes to protect homes and livelihoods.
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
Craig Stewart, IBC climate change and federal issues vice president
The IBC warned that Canada could face challenges similar to California, where home insurability is under threat.
Canada’s Flood Risk Reduction Plans and Actions
In Canada, the responsibility for managing flood risk is shared between all levels of government, industry sectors, non-government organizations, communities and individuals. The federal government’s primary role in flood risk management is to coordinate with, and support, provincial, territorial, and local efforts to mitigate, prepare for, respond to, and recover from flood emergencies.
Efforts are underway to build a consistent national understanding of floods through developing Federal Flood Mapping Guidelines.
Work is also underway to create a nation-wide flood risk awareness digital resource that gives Canadians the flood risk information they need and information on how best to protect their homes and communities. Budget 2023 proposes an additional $15.3 million over three years to continue this work.
The digital resource will use flood hazard modelling data, licensed through funding made available by the Flood Hazard Identification and Mapping Program (FHIMP). The resource will provide a consistent understanding of flood hazard across the country, and will also provide links to existing local flood maps where available.
The National Adaptation Strategy proposes expanding the FHIMP to 2028, with over C$160 mn in new funding. The program helps provinces and territories develop authoritative flood hazard maps to inform decision-making in support of flood mitigation, climate adaptation initiatives, and in building resilient infrastructure.
The Government of Canada also hosts an Emergency Geomatics Service, which provides near-real time flood extent maps from satellite data. These maps track active flooding events in Canada and provide crucial and timely information to emergency responders, evacuation managers, and community members.
Budget 2023 proposes C$31.7 mn to stand-up a low-cost flood insurance program, aimed at protecting households at high risk of flooding and without access to adequate insurance. This includes offering reinsurance through a federal Crown corporation and a separate insurance subsidy program.
Canadian Governments Need to Emphasize Climate Defence

Governments and insurers must work together urgently to prepare communities and households for wildfires, floods, windstorms and hail while improving Canada’s response to and recovery from these increasingly frequent and severe disasters.
In the last decade, over 880,000 Canadians and 87,000 businesses have suffered financial losses, due to damage caused by severe weather and natural catastrophes, with property and casualty (P&C) insurers paying out over C$30 bn in claims for these types of events.
Beyond these numbers lie the hard-to-quantify costs to society in terms of lives disrupted, homes lost and financial hardship experienced by individuals, families and businesses. In addition, Canadian households pay deductibles and shoulder non-insured losses, while governments absorb impacts to infrastructure and rely on tax payers to fund disaster assistance. The vast majority of those affected are low- and middle-income Canadians and small and medium-sized businesses.
Ten years ago, Canada began to take significant action to tackle climate change. As a country, we focused on reducing carbon emissions, and have allocated C$41.8 bn since 2016 to fund mitigation measures, such as those that affected or worked toward the reduction of Canada’s greenhouse gas emissions, including investments in the development of electric vehicles.
Federal Climate Spending

But any serious plan to fight the impacts of our changing climate must include adaptation measures to help households and communities become more resilient to the extreme weather we are already facing. Adaptation measures that affect or work toward adjusting to the effects of climate change include investments in emergency preparedness.
In the words of respected hockey coaches, we have to play offence and defence, at both ends of the rink, if we want to win against climate change. However, only a tenth of the amount spent on mitigation – $4.1 billion – went to adaptation in those same 10 years.
This lack of spending on adaptation leaves us significantly underprepared for the growing impacts of our changing climate, as witnessed in the staggering outcomes of the catastrophic weather events of 2024, which followed close on the heels of the worst wildfire season in Canadian history in 2023.
Canada’s Rising Catastrophe Costs Highlight Urgent Need for Climate Adaptation

Insured payouts for catastrophic weather events have surged dramatically over recent years. These payouts reached $1 bn in 2019 and 2020, $2 bn in 2021, $3 bn in 2022 and 2023, and exceeded $8 bn in 2024. This alarming trend raises serious concerns about future impacts.
Insurers are now covering more claims for single events than the national investment in climate adaptation over the past decade. Insufficient spending on resilience and disaster preparedness is taking a toll on Canadian families and communities. With severe floods, wildfires, windstorms, and hailstorms increasing in frequency and intensity, coordinated action is urgently needed from all levels of government to protect residents.
Canada has made significant progress in reducing greenhouse gas emissions, focusing heavily on mitigation. However, the worsening weather impacts demand a shift in focus to defense. The time has come to prioritize protecting Canadians from the escalating effects of severe weather.
The property and casualty (P&C) insurance industry is ready to collaborate with governments at every level. While insurers continue to support recovery efforts for those affected by last year’s disasters, the growing protection gap is driving up costs, impacting both the affordability and availability of coverage. Canadians need public and private sector partnerships to develop effective solutions for today’s and tomorrow’s extreme weather challenges.
FAQ
Canada recorded C$8.5 bn ($5.9 bn) in insured catastrophe losses in 2024, the highest on record.
Losses were driven by nine major events, with four summer events contributing C$7.12 bn, including severe flooding, wildfires, and a Calgary hailstorm.
The Calgary hailstorm in August was the most destructive single event, causing C$3 bn in insured losses in just over an hour.
In 2024, over 250,000 claims were filed due to catastrophic weather, 50% higher than the annual average.
While wildfire insurance remains available, increased frequency and severity of events are driving claims costs up, impacting premium affordability.
Recommendations include investments in flood-resilient infrastructure, stricter land-use planning, wildfire prevention measures, and updated building codes.
Losses in 2024 exceeded the C$6 bn record set in 2016 during the Fort McMurray wildfires and far surpassed other notable years like 2013 (C$4.03 bn) and 1998 (C$2.94 bn).
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QUOTES: Celyeste Power – President and CEO, Insurance Bureau of Canada (IBC), Craig Stewart – Vice-President, Climate/Federal, IBC & Co-Founder, Aldeo
Edited by Yana Keller