Insurance Bureau of Canada

The Insurance Bureau of Canada (IBC) is the national industry association representing the vast majority of Canada's private home, auto, and business insurers. Established in 1964, its core mission is to ensure that Canadians have access to affordable insurance and that the property and casualty (P&C) insurance industry's needs are represented through a unified voice. The organization advocates for a competitive, responsive, and resilient P&C insurance industry by collaborating with governments, regulators, and stakeholders. Its headquarters are located in Toronto, Ontario.

As an industry association, IBC provides a range of services primarily to its member companies and the public. For its members, these services include policy development, government relations, communications, legal support, investigative services to combat insurance crime and fraud, and vehicle information services. For consumers, IBC operates an Insurance Information Centre, offering guidance on purchasing home, auto, and business insurance, understanding claims processes, and providing resources on loss prevention and safety tips.

Celyeste Power assumed the role of President and CEO of IBC on January 1, 2023, becoming the first woman to hold this position. The organization is actively engaged in addressing significant challenges facing the insurance sector, particularly the escalating financial costs associated with climate change and natural disasters. IBC advocates for enhanced resilience measures and works with various levels of government on initiatives such as flood risk management. Recent reports from IBC highlight 2024 as Canada's costliest year on record for insured catastrophe losses, totaling approximately $8.5 billion, with wildfires identified as a major contributing factor.

Latest updates

Canadian Auto Theft Claims Fall, But Remain Elevated Amid Policy Interventions

Event summary

  • Auto theft claims in Canada decreased by 24% from 2024 to 2025, with claim values dropping by 30%.
  • Despite the recent decline, auto theft claims have increased by 38% over the last ten years, and claim values have risen by 169%.
  • The value of theft claims in 2025 reached $724 million, a significant increase from $269 million in 2015.
  • The IBC attributes the recent decrease to government and law enforcement actions, including investments in CBSA capacity and proposed Criminal Code amendments.

The big picture

While the recent decline in auto theft claims is a positive development, the persistent elevation of claims compared to historical levels underscores the ongoing challenge of organized crime and the need for sustained policy intervention. The IBC's reliance on government action highlights the industry's vulnerability to shifts in political priorities and resource allocation, and the data's exclusion of Saskatchewan, Manitoba, and British Columbia limits the scope of the analysis.

What we're watching

Regulatory Headwinds
The finalization and implementation of proposed Motor Vehicle Safety Standards amendments will be critical in determining the long-term effectiveness of theft prevention measures, and delays could undermine recent progress.
Export Controls
The ability of authorities to effectively monitor and regulate vehicle exports will dictate whether stolen vehicles continue to leave the country, limiting the impact of domestic prevention efforts.
Policy Sustainability
The continued political will and funding for initiatives like CBSA enhancements and organized crime disruption programs will be essential to sustain the current downward trend in auto theft.

Canadian Wildfire Losses Surge, Prompting Resilience Calls

Event summary

  • Canada experienced an 81% increase in hectares burned by wildfires between 2016 and 2025, totaling 46,550,139 hectares.
  • Insured wildfire losses have risen by 1,003% over the past decade, reaching $8.1 billion between 2016 and 2025.
  • The Fort McMurray wildfire in 2016 resulted in approximately 60,000 insurance claims and over $4.8 billion in insured damages.
  • IBC is advocating for governments to implement a three-point resilience plan focused on risk mitigation, infrastructure investment, and risk-based pricing.

The big picture

The escalating wildfire risk in Canada, as highlighted by the IBC's report, underscores the growing financial and societal costs of climate change. The surge in insured losses, coupled with the increasing frequency of catastrophic events, is putting significant pressure on the Canadian insurance market and demanding a shift towards proactive resilience measures. IBC's advocacy for government action signals a recognition that the current reactive approach is unsustainable and requires a fundamental reassessment of risk management strategies and infrastructure investment.

What we're watching

Regulatory Response
The effectiveness of Alberta’s planned wildfire community action plans by 2028 will be a key indicator of the province’s commitment to proactive risk mitigation, and whether these plans will be adequately funded and enforced.
Building Codes
The adoption rate and enforcement of stricter building codes for wildfire resilience, particularly in high-risk areas, will determine the long-term impact on property values and insurance availability.
Public-Private
The success of public-private partnerships in supporting risk-based pricing and addressing infrastructure deficits will shape the future of insurance affordability and accessibility in wildfire-prone regions.

Coastal BC Communities Prepare for Seismic Risk as Insurance Bureau of Canada Steps Up

Event summary

  • Insurance Bureau of Canada (IBC) is sponsoring community preparedness events in Tofino and Ucluelet, BC, on April 24-25, 2026.
  • Events include Earthquake Preparedness Tours, High Ground Hikes, and the deployment of an earthquake simulator ('Quake Cottage').
  • The events aim to educate residents on earthquake and tsunami risks and safe practices like 'Drop, Cover, and Hold On'.
  • British Columbia is a seismically active region facing tsunami risk from offshore earthquakes.

The big picture

The initiative underscores the growing recognition of climate-related and geological risks facing Canadian coastal communities. IBC's sponsorship signals a proactive approach to managing potential claims and reputational risk associated with a major seismic event. This also highlights the increasing pressure on insurers to play a role in disaster preparedness and mitigation, beyond simply providing post-event coverage.

What we're watching

Regulatory Scrutiny
Increased awareness of seismic risk may prompt regulators to review insurance coverage requirements and pricing models in coastal BC, potentially impacting IBC's member companies.
Infrastructure Investment
The events highlight the need for improved infrastructure and evacuation planning; government investment in these areas will likely increase, creating opportunities for engineering and construction firms.
Consumer Behavior
Greater public understanding of earthquake and tsunami risks could lead to increased demand for specialized insurance products and preparedness supplies, influencing consumer spending patterns.

Canadian Insurers Face $466 Million Ice Storm Loss, Resilience Push

Event summary

  • The estimated insured losses from the March 2025 ice storm in Ontario and Quebec have been revised upwards to $466 million, a $124 million increase from the initial estimate.
  • The storm is now ranked as Canada's costliest severe weather event of 2025 and the sixth costliest in Ontario's history.
  • Insured losses from catastrophic weather and wildfires have nearly tripled over the past decade, from $14 billion annually to $37 billion.
  • IBC has released a three-point resilience plan urging governments to invest in infrastructure, update building codes, and support risk-based pricing.

The big picture

The escalating costs of severe weather events in Canada highlight the growing financial risks associated with climate change and the inadequacy of current infrastructure and building codes. The insurance industry is increasingly vocal about the need for proactive government investment in resilience, but the scale of the challenge requires a significant shift in policy and planning. This situation poses a long-term threat to the affordability and availability of insurance, particularly in vulnerable regions.

What we're watching

Policy Response
The effectiveness of IBC's resilience plan will depend on the willingness of provincial and federal governments to implement the proposed changes, particularly given competing budgetary priorities.
Pricing Pressure
Increased frequency and severity of weather events will likely lead to upward pressure on insurance premiums, potentially impacting affordability and driving policy non-renewal.
Market Intervention
The potential for government intervention to limit premium increases or subsidize coverage in high-risk areas could distort market signals and create unintended consequences.

Alberta's Care-First Auto Insurance Cuts Premiums, Boosts Benefits

Event summary

  • Alberta's Care-First auto insurance system is demonstrating initial success, according to a newly released government report.
  • The reforms aim to reduce legal costs and lower auto insurance premiums for drivers.
  • The system also provides what is described as the 'most generous care and benefits' for individuals injured in collisions.
  • Insurance Bureau of Canada (IBC) has publicly praised the Alberta government's design and implementation of the Care-First system.

The big picture

Alberta's Care-First system represents a significant shift in auto insurance regulation, prioritizing injury care and cost reduction over traditional legal frameworks. This move could serve as a model for other jurisdictions grappling with rising insurance costs and a desire to improve access to care. The IBC's endorsement suggests a degree of industry acceptance, but the long-term impact on insurer profitability and market dynamics remains to be seen.

What we're watching

Implementation
The 'smooth transition' mentioned by IBC will be critical; any operational hiccups could undermine the system's perceived success and lead to political pressure for adjustments.
Cost Savings
The actual reduction in legal costs and the resulting impact on premiums will need to be closely monitored to validate the government's claims and maintain consumer confidence.
Competitive Response
Other Canadian provinces may consider similar reforms, potentially triggering a wave of regulatory changes across the property and casualty insurance market.

Atlantic Canada Flood Risk Spurs Insurance Coverage Scrutiny

Event summary

  • Insurance Bureau of Canada (IBC) issued a public advisory on March 18, 2026, urging Atlantic Canadian residents to prepare for potential flooding due to snowpack thaw.
  • IBC highlights the increasing frequency and severity of storms across Canada, with insured losses nearly tripling in the last decade (reaching $37 billion between 2016 and 2025).
  • The advisory details specific insurance coverage nuances, noting that sewer backup and overland flood damage require optional coverage, and ice damming coverage can be limited.
  • IBC is advocating for government investment in flood resilience infrastructure, land-use planning, and building code updates.

The big picture

The IBC advisory reflects a broader trend of escalating climate-related risks impacting the Canadian insurance market. The significant increase in insured losses highlights the financial strain on insurers and the potential for higher premiums or reduced coverage availability in high-risk areas. This situation necessitates a proactive approach from both insurers and policymakers to build resilience and ensure the long-term sustainability of the insurance sector.

What we're watching

Coverage Gaps
The public advisory underscores the potential for significant uninsured losses due to the limited availability of overland flood and sewer backup coverage, which could pressure insurers to reassess risk models and pricing strategies in the region.
Regulatory Response
Government responses to IBC's calls for infrastructure investment and building code changes will be critical in mitigating future flood risk and could influence the long-term viability of insurance in vulnerable areas.
Policyholder Behavior
Increased awareness of flood risk, driven by events like this, may lead to greater demand for specialized insurance products and proactive mitigation measures, impacting insurer market share and product development.

Quebec Freezing Rain Highlights Insurance Policy Nuances, Claims Surge Expected

Event summary

  • The Insurance Bureau of Canada (IBC) issued a public advisory on March 11, 2026, regarding insurance coverage for damages related to anticipated freezing rain in Quebec.
  • Standard home insurance policies typically cover food spoilage from power outages and frozen plumbing, but ice-weight damage requires 'all risks' coverage.
  • ’Water Damage – Above-Ground Water’ coverage specifically protects against water infiltration from melting ice and snow.
  • Vehicle damage is covered under Sections B (All Perils, Comprehensive, or Specified Perils) of auto insurance policies.
  • IBC advises affected policyholders to contact their insurers to verify coverage and file claims, emphasizing variability in policy terms.

The big picture

This event underscores the increasing importance of granular policy language and risk communication in the face of climate change-driven extreme weather events. Insurers operating in regions prone to freezing rain and similar conditions will need to proactively manage exposure through pricing adjustments, coverage limitations, and enhanced risk mitigation strategies. The IBC's public advisory highlights a reactive approach to a predictable problem, suggesting a need for more preventative consumer education.

What we're watching

Claims Volume
The volume of claims filed following the freezing rain event will be a key indicator of the overall financial impact on insurers, and could reveal gaps in policy understanding among policyholders.
Policy Uptake
The prevalence of 'all risks' and 'Water Damage – Above-Ground Water' coverage within Quebec's insurance market will determine the breadth of losses borne by insurers and the potential for future policy adjustments.
Regulatory Response
Quebec regulators may scrutinize insurer claims handling practices and policy clarity in the aftermath of the event, potentially leading to revised disclosure requirements or mandated coverage enhancements.

Ontario Rainfall Forecast Highlights Growing Flood Risk and Insurance Coverage Gap

Event summary

  • Environment Canada predicts heavy rainfall across southwestern and south-central Ontario beginning March 5, 2026.
  • The Insurance Bureau of Canada (IBC) is urging residents to take preventative measures due to the risk of localized flooding, exacerbated by existing snowpack and frozen ground.
  • IBC highlights that sewer backup and overland flood damage require specific, optional insurance coverage.
  • Standard homeowner's insurance typically covers sudden and accidental water damage from ice dams, but not ongoing or repeated issues.

The big picture

This event underscores the growing financial and operational challenges posed by climate change to the property and casualty insurance sector in Canada. The combination of heavy rainfall, existing snowpack, and frozen ground creates a 'perfect storm' scenario that highlights the inadequacy of standard insurance coverage for many homeowners. The IBC's proactive messaging is a strategic effort to manage expectations and potentially mitigate future claims surges, while also advocating for policyholder awareness and appropriate coverage options.

What we're watching

Coverage Gaps
The IBC's warning about sewer backup and overland flood coverage reveals a potential mismatch between perceived risk and actual insurance protection for Ontario homeowners, which could lead to increased claims disputes and policy adjustments.
Climate Adaptation
The increasing frequency and severity of storms, as noted by IBC, will likely accelerate the need for municipalities and insurers to invest in climate adaptation infrastructure and risk mitigation strategies, potentially impacting insurance premiums and availability.
Regulatory Response
Government regulators may face pressure to review insurance coverage mandates and flood risk disclosure requirements following this event, particularly if widespread uninsured losses occur.

IBC Tool Highlights Vehicle Insurability, Potentially Shifting Consumer Behavior

Event summary

  • Insurance Bureau of Canada (IBC) launched 'How Cars Measure Up,' an online tool ranking vehicle models based on insurance claim frequency and cost.
  • The tool incorporates data from most auto insurers across Canada, covering models from 1997 to 2025, with a minimum of 1,500 insured vehicles per model.
  • The tool allows users to compare up to three vehicles simultaneously, factoring in make, model, year, body style, and power type.
  • IBC states the tool aims to help drivers make informed decisions when buying or leasing vehicles, considering insurability alongside factors like reliability and safety.

The big picture

IBC's move signals a growing trend toward consumer-facing data transparency within the insurance industry. By providing this information, IBC aims to empower consumers and potentially influence vehicle purchasing decisions, which could have ripple effects across the automotive and insurance sectors. This initiative also underscores the increasing importance of data-driven insights in shaping consumer behavior and market dynamics.

What we're watching

Consumer Adoption
The tool's success hinges on driver adoption; widespread use could shift vehicle purchasing decisions and impact manufacturer sales, particularly for models consistently ranked unfavorably.
Manufacturer Response
Automakers may face pressure to improve vehicle design and safety features to lower insurance costs and improve rankings, potentially leading to a new competitive dimension in vehicle marketing.
Regulatory Impact
The transparency provided by the tool could prompt regulatory scrutiny of insurance pricing models and potentially influence government policies related to vehicle safety and insurance mandates.

Canada's Auto Theft Decline Masks Persistent Losses, Regulatory Gaps

Event summary

  • Auto theft claims in Canada have declined by 27% over the last two years (H1 2025 vs. H1 2024), following a National Summit in February 2024.
  • Despite the decline, auto insurance losses remain up 371% over the decade, significantly outpacing theft reduction.
  • The federal government has invested in CBSA capacity and implemented rule changes, but gaps remain in export oversight and data sharing.
  • Proposed amendments to Canada Motor Vehicle Safety Standards aim to modernize anti-theft measures, including addressing 'electronic attack tools'.

The big picture

While the initial progress following the 2024 summit is encouraging, the persistent rise in insurance losses and the continued prevalence of auto theft highlight the complexity of the issue. The ongoing need for regulatory adjustments and enhanced border security underscores the vulnerability of Canada's auto sector to organized crime, and the potential for further premium increases if these gaps are not addressed.

What we're watching

Regulatory Progress
The speed at which the proposed vehicle safety standards are implemented will dictate the effectiveness of the new measures in deterring theft and reducing insurance losses. Delays could allow continued exploitation of existing vulnerabilities.
Export Controls
How effectively the government addresses the regulatory gap concerning freight forwarders will determine whether stolen vehicles continue to be illegally exported, undermining broader anti-theft efforts.
Data Integration
The ability of law enforcement agencies to improve data sharing, particularly through modernization of the Interprovincial Record Exchange system, will be crucial for disrupting international crime rings and preventing vehicle registration loopholes.

Alberta Auto Theft Costs Surge, Threatening Insurance Reform

Event summary

  • Auto theft claims in Alberta are 76% higher than in 2021, costing insurers significant sums.
  • Calgary and Edmonton account for the bulk of the losses, with costs up 73% and 85% respectively.
  • The cost of auto theft claims declined slightly in the first half of 2025, attributed to government and law enforcement efforts.
  • Alberta is transitioning to a 'Care-First' auto insurance system in 2027, aiming to reduce legal costs and improve care for accident victims.
  • The Alberta government has frozen or capped auto insurance rates for four years, creating a competitive market imbalance.

The big picture

Alberta's auto insurance market is facing a confluence of challenges: rising theft rates, escalating legal and care costs, and government rate controls. The province's shift to a 'Care-First' system represents a significant structural change, but its success is contingent on addressing the underlying drivers of cost, particularly auto theft. The situation highlights the broader tension between government intervention and market-based solutions in the insurance sector.

What we're watching

Law Enforcement
The effectiveness of increased law enforcement resources and the proposed provincial auto theft team will be critical in curbing theft rates and mitigating future claims costs. Sustained progress will be needed to offset the ongoing sophistication of criminal networks.
Regulatory Impact
The success of Alberta’s 'Care-First' system hinges on its ability to genuinely reduce legal costs and improve driver outcomes, and whether it can be implemented without further rate intervention.
Federal Action
The pace of implementation of the Canadian Motor Vehicle Safety Regulation amendments and the strengthening of Canada Border Services Agency will determine the long-term effectiveness of preventing stolen vehicles from leaving the country.

Canadian Insured Losses Surge, Intensifying Resilience Imperative

Event summary

  • Insured damage from severe weather in Canada reached $2.4 billion in 2025, ranking as the tenth costliest year on record.
  • The decade between 2016 and 2025 saw annual insured losses nearly triple compared to the previous decade (2006-2015), reaching $37 billion.
  • The average number of insurance claims has nearly doubled between 2006-2015 and 2016-2025.
  • Notable events included a March ice storm in Ontario and Quebec ($490 million), May wildfires in Manitoba and Saskatchewan ($300 million), and December floods in British Columbia ($90 million).

The big picture

The escalating frequency and severity of severe weather events in Canada represent a systemic risk, placing significant strain on the insurance industry and highlighting the inadequacy of current infrastructure and planning practices. This trend underscores the need for a fundamental shift in how Canada approaches community development and disaster preparedness, moving beyond reactive rebuilding to proactive resilience measures. The financial burden is substantial, and the pressure on governments to address the issue will only increase as losses continue to mount.

What we're watching

Government Response
The effectiveness of government investments in resilience measures will be a key determinant of future insured loss trends, and political pressure to act will likely intensify.
Pricing Pressure
Rising claims costs will likely force insurers to re-evaluate pricing strategies and risk assessment models, potentially impacting affordability and market access.
Building Codes
The pace at which Canada updates and enforces building codes to account for increased climate risks will influence the long-term vulnerability of communities and the insurance market.

BC Flooding Claims Near $90 Million, Exposes Resilience Funding Gap

Event summary

  • December 2025 flooding in British Columbia resulted in approximately $90 million in insured damage, with $74 million concentrated in the Fraser Valley.
  • The flooding event, impacting both BC and Alberta, caused evacuations, power outages, and loss of life.
  • This is the second major flood event in BC within four years, following the devastating 2021 floods.
  • The province's flood strategy, developed after the 2021 event, remains underfunded, according to the Insurance Bureau of Canada (IBC).

The big picture

The recurring nature of these flood events underscores the escalating financial and human costs of climate change and inadequate infrastructure investment. IBC's advocacy highlights a growing tension between reactive disaster relief and proactive risk mitigation, a dynamic likely to intensify as extreme weather events become more common. The underfunding of the BC flood strategy represents a systemic governance challenge, potentially impacting the long-term viability of the province's property and casualty insurance market.

What we're watching

Funding Priorities
The BC government's response to IBC's call for increased flood strategy funding will be a key indicator of its commitment to climate resilience, potentially impacting future insurance rates and availability.
Risk Transfer
Whether the increased frequency and severity of flooding events will lead to a reassessment of flood insurance pricing and coverage availability across the province remains to be seen.
Infrastructure Investment
The pace at which protective infrastructure projects are implemented will directly influence the future trajectory of insured losses and the effectiveness of the BC flood strategy.
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