Severe weather events cost Canadian commercial carriers over C$1.7bn in 2024, according to Catastrophe Indices and Quantification (CatIQ). This marks the second-highest year for commercial catastrophe losses.
In 2024, insured damage from severe weather events in Canada exceeded C$8.5bn for the first time. This figure broke the previous record of C$6bn set in 2016 following the Fort McMurray wildfires.
The 2024 total was nearly triple the C$2.7bn recorded in 2023 and 12 times the annual average of C$701mn between 2001 and 2010.
- The wildfire in Jasper National Park‘s commercial center accounted for C$1.1bn in total industry losses, including C$650mn in insured commercial losses, making it the most significant commercial event of the year. It ranked third overall in terms of total industry loss.
- The remnants of Hurricane Debby struck Quebec, causing C$360mn in commercial insurance losses, making it the second-most costly event for commercial insurers.
- Severe storms and hail in Calgary, Alberta, led to C$280mn in insured commercial damage, while storms and flooding in Ontario added C$190mn in commercial losses.
These events occurred in rapid succession last summer.
Liam McGuinty, vice president of strategy at the Insurance Bureau of Canada (IBC), stated that the historic level of damage in 2024 highlights the rising financial risks Canadian businesses face from severe weather.
He noted that these events not only caused physical destruction but also disrupted business operations, supply chains, and the flow of goods and services.
The costliest year for commercial losses was 2016, with C$1.92bn in losses, primarily driven by the Fort McMurray wildfire, according to Insurance Bureau of Canada. The third-highest year was 2013, with C$1.72bn in commercial losses, largely due to flooding.
Liam McGuinty, vice president of strategy at the Insurance Bureau of Canada
Celyeste Power, President and CEO of IBC, emphasized the impact on Canadians, noting that the industry continues to support customers in rebuilding and recovering. She called for government action to protect communities from increasing catastrophic events.
The summer of 2024 marked the most destructive period for insured losses in Canadian history, driven by wildfires, floods, and hailstorms.
In July and August alone, four major weather events caused over $7bn in insured losses and led to more than 250,000 insurance claims—50% more than insurers typically handle in a year.
The most damaging event was an August hailstorm in Calgary, Alberta, which caused $3bn in insured losses in just over an hour.
Flooding continued to impact many regions across the country. As wildfires in California challenge the insurability of homes, Canadian insurers warn of similar risks in high-exposure areas. While wildfire insurance remains available, the increasing frequency and severity of weather-related losses are putting pressure on claims costs and premiums.
Severe weather-related losses have surged across Canada, significantly impacting home insurance costs. Since 2019, claims for personal property damage have risen by 115%, while the cost of repairs and replacements has jumped by 485%.
Craig Stewart, Vice-President of Climate Change and Federal Issues at IBC, stressed that the rising risk is now affecting insurance affordability and availability.
Canada is clearly becoming a riskier place to live, work and insure. As insurers price for risk, this increased risk is now impacting insurance affordability and availability
Craig Stewart, Vice-President, Climate Change and Federal Issues, IBC
He urged governments to invest in resilient infrastructure, adopt land-use planning to avoid building on flood plains, implement FireSmart practices in wildfire-prone areas, and enforce modern building codes to protect property and lives.
Major weather events in 2024 included the Calgary hailstorm, remnants of Hurricane Debby in Quebec, the Jasper Wildfire in August, flooding in the Greater Toronto Area in July and August, a deep freeze in Western Canada in January, and severe storms in southern British Columbia in October.
Fort McMurray AB, April 30 to June 1, 2016
In May 2016, wildfires broke out in northern Alberta resulting in the most expensive natural disaster in the history of Canada. The city of Fort McMurray, located in the heart of the Athabasca oil sands, was hit by a massive system of wildfires that swept through the Regional Municipality of Wood Buffalo. The first wildfire was discovered on April 30, north of Fort McMurray.
The Regional Municipality declared a local state of emergency and a mandatory evacuation order for Centennial Park on May 1 as well as another evacuation order for Prairie Creek and Centennial Trailer Park on May 2.
The Fort McMurray fire grew rapidly due to hot and dry weather conditions, doubling in size to 2,656 hectares in a manner of hours.
On May 3, the wildfire intensified and crossed over Highway 63, cutting off the route to evacuees, prompting the Athabasca Chipewyan First Nation to declare a state of local emergency and a mandatory evacuation order for Fort McMurray’s Lower Townsite and downtown area, which included the communities of Gregoire, Beacon Hill, Abasand, Waterways, Draper, Saline Creek, Grayling Terrace, Thickwood, Wood Buffalo and Dickinsfield. Later in the day the entire city of Fort McMurray was under a mandatory evacuation order.
During the evacuations two people were killed in a car crash. On May 4, the Alberta government declared a provincial state of emergency.
The Fort McMurray fire quickly grew to 85,000 hectares as the wildfire spread further north and east eventually passing through Fort McMurray.
Evacuees that fled north of Fort McMurray had to be air lifted to safety. Some evacuees were taken to Lac La Biche, while the majority where sent to Edmonton and Calgary. On May 10, two of the main Fort McMurray fires joined together and formed a massive blaze of 229,000 hectares.
On May 16, all workers in work camps and oil sand operations north of Fort McMurray were forced to move south as the wildfire spread further north.
Residents of Fort McMurray were allowed to return home on June 1. In total, the Fort McMurray fires burned approximately 579,767 hectares of land causing the evacuation of over 90,000 people and destroyed 2,400 homes and business, including 530 other buildings that were damaged.
At its peak, there were over 2000 firefighters working the fires daily, including helicopters and water bombers. In addition, firefighters received help from 200 firefighters from the United States, 60 from Mexico and 298 from South Africa. Firefighters and emergency response personnel received help from the Canadian Red Cross who assisted with evacuation efforts.
