For the first time in Canadian history, insured damages from severe weather events surpassed $8 billion in 2024, according to Catastrophe Indices and Quantification Inc. This figure shattered the previous record of $6 billion from 2016, which was mainly caused by the Fort McMurray wildfires. The 2024 total is nearly triple the insured losses from 2023 and 12 times the annual average of $701 million in the decade between 2001 and 2010.
“Beyond the staggering financial losses are hundreds of thousands of Canadians whose lives have been upended,” said Celyeste Power, President and CEO of the Insurance Bureau of Canada. “While Canada’s insurers continue to help communities rebuild, governments must take decisive action to protect Canadians from escalating risks.”
Summer 2024 was devastating
The summer of 2024 was the most destructive season for insured losses in Canadian history, driven by the perfect storm of wildfires, floods, and hail. In July and August alone, four catastrophic events resulted in over $7 billion in insured losses and more than 250,000 claims — 50% more claims than insurers typically process in an entire year.
The single most destructive event was the monster Calgary hailstorm on Aug. 5, which caused $3 billion in insured losses in just over an hour. An estimated 36,000 homes were affected, and unfortunately they were in the northern end of the city … the same area where a $1.2 billion hailstorm hit in 2020. Many homes had just been repaired, only to be hit again. This has caused consumers and citizens to advocate for far more stringent provincial building codes, at least in the areas that seem to be hit the most often. In an ideal world, those codes would apply to the entire city. Mandating the use of materials such as fibre cement siding or traditional stucco that are far more resistant to hail than vinyl could be a solution, however cost is an issue.
Meanwhile, flooding caused widespread damage nationwide, impacting nearly every region of the country.
Rising risks and insurance pressures
Canada’s property insurers are warning that the increasing frequency and severity of weather-related losses are driving up claims costs and could impact the affordability and availability of insurance. Since 2019, the number of personal property damage claims has risen by 115%, while repair and replacement costs have surged by 485%.
“Canada is becoming a riskier place to live and insure,” said Craig Stewart, Vice-President of Climate Change and Federal Issues at IBC. “Governments must invest in flood infrastructure, enforce land-use rules to avoid building on floodplains, implement FireSmart programs in wildfire-prone areas, and adopt overdue building codes to protect homes and communities.”
Firesmart landscaping techniques include keeping trees at least three metres apart and well pruned. Lower limbs should be removed to at least two metres above ground, and trees should not be planted within 10 metres of your home. Smaller, fire-resistant shrubs can be planted 1.5 metres or more from your home.
Major weather events in 2024
Some of the most significant severe weather events in 2024 included:
- January 12–15: Western Canada deep freeze
2024 started out harshly as extreme cold weather was brought down from the Arctic by a dreaded polar vortex. Alberta’s Keg River, located approximately 91 kilometres southwest of High Level, experienced a record low of -51.5°C on Jan. 14. Insured damages from incidents such as frozen and burst pipes came to $180 million. - May 16: Manitoba hailstorms
Manitobans were forced to break out their shovels in May after a series of severe thunderstorms brought enough hail to accumulate to depths higher than five centimeters in some areas. Vehicles and homes were damaged to the tune of $60 million in insured damages. - June 23: Severe storms in Saskatchewan
Five tornadoes occurred in south-central Saskatchewan on the evening of June 23, in addition to two tornadoes that had already been confirmed that day. Maximum windspeeds of 140 kilometres an hour near Annaheim and Carrot River resulted in damage to roofs, buildings, vehicles, and trees and an insurance bill of $135 million - July 15–16: Toronto and GTA flash floods
The July flash floods on Ontario resulted in $990 million in insured damages. Heavy rainfall overwhelmed sewer and water drainage systems, causing widespread flooding in low-lying areas - July 22–August 17: Jasper wildfire
The final numbers for the Jasper wildfire are in and have reached more than $1.1 billion. The entire town was evacuated, but thanks to the efforts of brave firefighters 70% of the town was saved. - August 5: Calgary hailstorm
The $3 billion in damage caused by the Aug. 5 hailstorm were mainly due to damage to siding, roofs, and vehicles. - August 9–10: Quebec – Hurricane Debby remnants
A huge rainstorm caused by the tail end of Hurricane Debby caused major flooding across the southern parts of Quebec and resulted in $2.7 in insured damages, making it Quebec’s most costly severe weather incident since the 1998 ice storm. - August 13–September 16: GTA and southern Ontario flooding
Two days of heavy rainfall and thunderstorms on August 17 and 18 2024, led to significant flood damage in Mississauga, Etobicoke and other parts of the GTA. Unfortunately it was the summer of the flood in Ontario and these episodes caused $110 million in damages. - October 18–20: Southern BC storms
An atmospheric river that led to intense flooding along the southern British Columbia coastline in October resulted in over $120 million in insured damage.
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