Homeowners insurance premiums in Alberta increased nearly fivefold over 20 years, the largest rise recorded in any Canadian province, according to new Statistics Canada data.
The study found that Alberta homeowners insurance premiums rose 391.6% between December 2005 and December 2025. More recently, premiums increased 55.8% between December 2020 and December 2025, far above the national average of 38.6%.
Statistics Canada economist Marisa McGillivray said the report examined the impact of extreme weather events across Canada, with a focus on homeowners insurance. She said the data shows the link between higher insurer costs and higher premiums for consumers.
Alberta has been disproportionately affected by severe weather and related insurance premium increases, McGillivray said. She pointed to 2016 and 2024 as particularly important years for catastrophic claims.
The report said 2024 was the costliest year on record for extreme weather insurance claims in Canada. The Calgary hailstorm produced $3 bn in insured damage, while the Jasper wildfire generated $1.3 bn in claims.
Half of that record-breaking $8.6 bn in catastrophic extreme weather claims occurred in Alberta.
Before 2024, Canada’s costliest insurance year was 2016, when catastrophic claims reached $6.2 bn. That total was driven mainly by the Fort McMurray wildfire, one of the most expensive disasters in Canadian insurance history.
Insurance premium increases in and around Calgary partly reflect population density rather than only local hazard levels. More people, homes, vehicles, and buildings in exposed areas increase the financial impact when severe storms occur.
Insurance costs are also affected by rising replacement costs. Higher prices for materials such as lumber, labour constraints, and rebuilding expenses have made claims more expensive for insurers.
The report said costs stayed high even though weather was milder last year than in 2024. Insurers still faced economic pressure from earlier losses, higher repair costs, and the need to rebuild financial capacity after major claim years.
Premium increases are driven by necessity. He said climate change has become a major factor for insurers and claims payouts.
Climate change has been a huge factor on insurance industry and claims payouts. Alberta now faces wildfires, floods, heavy rain, and repeated severe storms.
Insurers must price for the possibility that another major catastrophic loss could hit Alberta or another part of Canada every year.
Uncertainty makes premiums difficult to calculate. Insurers must collect enough premiums to pay claims from frequent storms while remaining financially sustainable.
In high-risk storm areas such as northwest Calgary, insurers cannot simply raise premiums only for the most exposed homes. Coverage would become unaffordable for those homeowners if all risk costs were concentrated locally.
The principle behind insurance is, of course, the losses of a few get spread out amongst the many. So, when we do have these catastrophic losses due to severe weather change and climate, everybody feels it.
Statistics Canada noted that some Alberta insurers were not profitable in 2024. Haggis said some companies paid out more in claims than they collected in premiums, creating pressure to recover those losses over time.
The Institute for Catastrophic Loss Reduction said the answer to rising insurance costs is not difficult to identify. Canada needs to reduce losses by investing in stronger homes and safer communities.
That approach includes building homes that better withstand severe weather, avoiding construction in high-risk flood zones, and using impact-resistant roofing.
Those measures lower damage before claims occur, rather than only shifting costs through higher premiums.
According to Beinsure analysts, Alberta’s 391.6% premium increase shows how climate risk, urban exposure, and rebuilding inflation combine inside property insurance pricing.
The province’s experience also shows why mitigation matters for affordability. Without stronger roofs, smarter land-use decisions, and better disaster preparation, insurers will keep spreading catastrophe costs across wider pools of homeowners.
