Weather Disasters and the Insurance Market in Canada

This report examines the impact of catastrophic weather events on the insurance market in Canada, detailing the significant rise in insured losses and home insurance premiums. Since 1983, Canada has experienced over 300 catastrophic weather events, with insured damages reaching nearly $60 billion by 2024. The report highlights that more than 60% of insured losses from 2008 to 2024 were due to damage to personal property, which has nearly doubled in average cost over the past five years. The document outlines how rising home insurance costs are particularly pronounced in areas most affected by severe weather, such as Alberta, which has the highest share of insured losses. It also discusses the challenges faced by government disaster recovery programs in providing financial assistance as costs rise. The report provides a detailed analysis of the correlation between insured losses and home insurance premiums, emphasizing the strain on the insurance sector and the adjustments being made in response to increasing risks associated with extreme weather events.