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.
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