IBC - Summer 2024 shatters records for severe weather damage: Over $7 billion in insured losses from floods, fires and hailstorms
“This has been a devastating summer for hundreds of thousands of Canadians. Relentless storms, fires and floods have resulted in approximately 228,000 insurance claims – a 406% increase compared to the 20-year average”
Cars are partially submerged in flood waters in the Don Valley following heavy rain in Toronto on July 16 2024. THE CANADIAN PRESS/Arlyn McAdorey
This recent report from the Insurance Bureau of Canada (IBC) warns that Summer 2024 was the most destructive season in Canadian history for insured losses due to severe weather, with over $7 billion in claims. The analysis, based on initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ), underscores the urgent need for governments to take immediate action to strengthen disaster resilience and mitigate the financial and human toll of extreme weather.
The report highlights that insured losses from catastrophic events have surged more than tenfold compared to the annual average from 2001-2010, with a record 228,000 insurance claims filed this summer—a 406% increase over the 20-year average. The most costly disasters included the Calgary hailstorm ($2.8 billion), flooding in Quebec ($2.5 billion), floods in Toronto and Southern Ontario ($940 million), and the Jasper wildfire ($880 million).
Experts have called for a fundamental shift in climate adaptation policies, urging governments at all levels to prioritize investments in disaster risk reduction. The report stresses the need for flood defenses, stormwater infrastructure upgrades, and fire-proofing initiatives to protect communities and ensure the long-term affordability of insurance. It also warns that continued inaction could lead to an insurability crisis, with millions of new homes being built in high-risk areas without adequate climate resilience measures.
“These events are escalating at a shocking rate and Canada is simply not prepared. The insurance industry is committed to working with governments across the country on a collaborative approach to adapting to our changing climate and building resilient communities. Canadians deserve this type of leadership from their elected officials and this level of commitment from the industry they rely so heavily upon.”
As Canada faces escalating climate risks, initiatives like the Canada1Water project (C1W) become increasingly vital. C1W provides essential data and insights into the impacts of climate change on water systems, equipping policymakers and researchers with the tools needed to develop sustainable strategies that safeguard communities against future climate-driven hydrologic disasters.