Canada's insurers renew call for governments to better protect homes, businesses and communities from severe weather
A series of strong thunderstorms that swept across parts of Ontario and Quebec between June 30 and July 3 caused $439 million in insured damage, according to the latest estimate from Catastrophe Indices and Quantification Inc. (CatIQ). The storms brought hail, damaging winds, torrential rain and flash flooding to communities across Ontario and Quebec, from Ottawa, Windsor, North Bay, Toronto and Peterborough to Montreal, affecting thousands of residents. These losses once again highlight the burgeoning price of extreme weather events in Canada.
“The growing cost of severe weather is being felt by households, communities, insurers and governments across Canada,” said Maximilien Roy, Vice-President, Strategy, Insurance Bureau of Canada (IBC). “These storms underscore the need for greater investment in measures that reduce flood risk and better protect Canadians from future losses. Taking action now will help build more resilient communities and reduce the long-term costs associated with increasingly severe weather.”
Ottawa and the surrounding area were hit particularly hard during these intense thunderstorms. On Canada Day (July 1), the city recorded 118 mm of rain, breaking its all-time July daily rainfall record. Throughout the afternoon and evening, the storm flooded residential streets and highways, and local officials have reported more than 4,500 basement floods, including sewer backups and drainage failures. Damage assessments are ongoing, and a more detailed estimate of insured losses in the Ottawa region may be available in the coming weeks.
“Extreme weather is not a future threat. It is already disrupting lives, damaging homes and affecting communities,” added Roy. “As Canadians recover from these storms, insurers will continue to be there to help. But recovery alone is not enough. Governments must take urgent action to reduce flood risk, strengthen community resilience and better protect Canadians from future losses.”
The rising costs of extreme weather
Over the last decade, insured losses from extreme weather in Canada have averaged more than $3.7 billion annually, up from $1.4 billion in the previous decade and $883 million in the decade before that. Annual losses have increased by roughly 320% since the late 1990s and early 2000s, after accounting for inflation. In 2024, Canada experienced its costliest year on record, with insured losses from extreme weather exceeding $9 billion. Households, businesses, governments and communities across the country are having to bear these escalating costs.
Protecting Canadians from severe weather risks
IBC is reiterating its call for all orders of government to take immediate steps to reduce Canada’s exposure to extreme weather events, including:
A commitment to build new homes away from high-risk flood and wildfire zones by strengthening land use planning and restricting development in areas at highest risk
Providing incentives for homeowners to invest in practical, affordable measures that reduce extreme weather damage and recovery costs
Requiring cost-effective, community-level mitigation measures, such as flood protection infrastructure and measures recommended by the FireSmart program to help reduce the risk of wildfire damage, when building in high-risk areas is unavoidable
Investing in resilient infrastructure to protect communities from extreme weather risks, such as flooding
Strengthening building codes and construction standards to ensure new homes are built with resilient features that reflect current and future climate conditions
Empowering homeowners, renters and businesses by providing clear, accessible information so they can make informed decisions and take practical steps to mitigate their risks.
The amount of insured damage is an estimate provided by CatIQ (www.catiq.com) under licence to IBC.
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