Canada’s insurers renew call for governments to take urgent action to reduce flood risk and protect communities
The severe storms that swept across Manitoba and Saskatchewan on June 9–10 caused more than $728 million in insured damage, according to initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ). The storms brought tornadoes, hail, damaging winds, torrential rain and flash flooding to communities across both provinces. Separately, flooding in Montreal and the surrounding area on June 20–21 resulted in more than $409 million in insured damage.
These losses come just ahead of the second anniversary of the July 2024 flash flooding in Toronto and other parts of southern Ontario, which is now estimated to have caused more than $909 million in insured damage, according to updated CatIQ estimates. The Toronto flood was one of several catastrophic events that contributed to a record-breaking $8 billion in insured losses during the 2024 summer of catastrophe, the costliest season for severe weather losses in Canadian history.
“Together, these events highlight the growing financial and human costs of flooding across Canada. Flooding is causing more damage, affecting more Canadians and placing growing pressure on households, communities, insurers and governments alike,” said Liam McGuinty, Vice-President, Federal Affairs, Insurance Bureau of Canada (IBC). “These recent and past catastrophes are a reminder that flood risk is no longer a future challenge – it is a current reality affecting Canadians from coast to coast.”
In Ottawa, residents continue to recover from the severe Canada Day storm that triggered widespread flooding, damaging homes, forcing evacuations and causing road closures. In response, IBC representatives have been in the community offering insurance guidance. IBC has also launched its Virtual Community Assistance Mobile Pavilion (V-CAMP) helpline, providing affected residents with real-time, one-to-one support.
Over the last 20 years, flood and water-related insured losses have increased more than 300% compared to the previous two decades, according to CatIQ. In recent years, flood and water-related events have accounted for 39% of insured catastrophic losses. Since 2009, insurers have paid an average of over $2 billion per year in catastrophic weather-related claims. Insurers faced record insured losses in recent years, including $2.4 billion in 2025 and $9.4 billion in 2024.
IBC Calls for Urgent Action to Reduce Flood Risk
To meaningfully reduce flood losses and help keep insurance affordable, IBC is calling on governments to accelerate action in key areas, including:
Building new homes away from high‑risk flood plains by strengthening land‑use planning and restricting development in areas at highest risk
When building in flood‑prone areas is unavoidable, requiring cost‑effective, community‑level mitigation measures, such as flood protection infrastructure and nature‑based solutions
Investing in modernizing wastewater and stormwater infrastructure so cities and towns can safely manage heavier, more frequent rainfall events
Scaling up home retrofit programs to incentivize homeowners to invest in practical, affordable measures that reduce flood damage and recovery costs
Helping Canadians understand the risks they face through consumer-facing risk tools, including through provincial governments opting in for the federal government’s recently launched Flood Risk Finder
Strengthening building codes and construction standards to ensure new homes are built with flood‑resilient features that reflect current and future climate conditions
Educating consumers by providing clear, accessible information to empower homeowners, renters and businesses to make informed decisions and take practical steps to mitigate their risk.
“Flooding is Canada's costliest and most pervasive climate risk. Over the last decade, insurers have significantly expanded the availability of overland flood insurance and continue to help homeowners recover and rebuild after disasters. But insurance alone cannot solve Canada’s flood problem. We need all orders of government to accelerate investments in adaptation and flood-risk reduction to better protect Canadians and build more resilient communities,” added McGuinty.
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