Summer 2024 the most destructive season in Canadian history for insured weather losses: IBC
Due to severe weather, the Summer of 2024 now ranks as the most destructive season in Canadian history for insured losses at more than CAD 7 billion, as per initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ).
This information stems from a new Insurance Bureau of Canada (IBC) report, which noted that in only two months, July and August, this summer eclipsed the worst year on record and has pushed the 2024 year-to-date insured loss tally to over CAD 7.7 billion.
A break down of the four events from July and August shows that the Calgary hailstorm is the costliest at CAD 2.8 billion, followed by the Quebec floods at CAD 2.5 billion, flooding in Toronto and other parts of Ontario at CAD 940 million, and the Jasper wildfire at CAD 880 million.
The IBC and its members have reportedly been calling on governments for nearly a decade to take action to adapt to Canada’s changing climate.
“Insured losses from these events have been climbing for years, with this summer as a stark reminder that Canada has not done enough to prepare. IBC is calling on all governments to treat Canada’s changing climate as the crisis it is and to collaborate on reducing disaster risk,” the Bureau said.
Celyeste Power, President and CEO of the IBC, commented, “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.
“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.”
Craig Stewart, Vice-President of Climate Change and Federal Issues at the IBC, added, “Insurers are now paying out more in claims for a single event than the CAD 1.9 billion that the federal government has allocated to climate adaptation over the past decade.
“Canada needs to get ready for the next disaster. This is not the time for finger-pointing, this is the time for governments and the private sector to work together to better protect Canadians and our communities.
“This is a whole-of-society challenge and requires all leaders and stakeholders to come together to develop a national action plan to ensure Canada is better protected. We all have a role to play in helping communities prepare for and recover from severe weather events.”
Stewart continued, “In June 2023, the federal government launched an impressive National Adaptation Strategy, but little progress has been made towards achieving its targets at any order of government.
“As costs from climate-fueled disasters mount, action from governments to reduce risk is stalled. Municipalities are being funded to build new homes on flood plains and areas prone to wildfire.
“Other orders of government need to support resilient building so that insurance is available and affordable for homeowners in the future; this includes investments in disaster mitigation such as flood defences, upgrades to stormwater infrastructure, and programming to help fire- and flood-proof new and existing homes.”
