Severe Weather in 2023 Caused Over $3.1 Billion in Insured Damage

Source: | · INSURANCE BUREAU OF CANADA · | January 8, 2024

Over 1.5 million high-risk households cannot obtain affordable flood insurance.

For the second year in a row, Canada exceeded $3 billion in insured damage from natural catastrophes and severe weather events. Nationally, insured damage for severe weather events reached over $3.1 billion in 2023, according to Catastrophe Indices and Quantification Inc. (CatIQ).

In fact, 2023 is now the fourth-worst year for insured losses in Canada. This grim statistic highlights the financial costs of a changing climate to insurers, governments and taxpayers. While 2023 was a record-breaking year for wildfires, flooding also continued to cause destruction in nearly every region across Canada.

After surveying insurers, IBC sees no change in the availability or affordability of wildfire insurance coverage across the country. However, as a result of escalating losses and revised risk modelling, Canada is viewed now as a riskier place to insure. Consequently, numerous Canadians cannot access flood insurance. It is also becoming harder for some households to obtain insurance for earthquakes and related hazards.

“The federal government committed to a national flood insurance program in last year’s Federal Budget. However, progress has stalled, leaving too many Canadians vulnerable to the effects of our changing climate,” said Craig Stewart, Vice-President, Climate Change and Federal Issues, Insurance Bureau of Canada (IBC). “Once launched, this program would provide Canadians living in high-risk areas with affordable financial protection and peace of mind when a flood strikes. Details of the program must be shared with our industry and the provinces this winter if it’s to be operational before the next federal election.”