A newly released Statistics Canada report underscores how the increased frequency and severity of extreme weather events are driving up claims costs and putting pressure on home insurance premiums across the country. In response, the Insurance Bureau of Canada (IBC) is urging governments to enact stronger resilience measures.

The study, “Extreme weather impacts on consumers and insurers in Canada, December 2019 to December 2025: An updated analysis,” highlights that natural catastrophes are no longer rare events, with four of the last five years now ranking among the 10 costliest on record.

Claims costs have surged dramatically. Since 2009, insurers have paid nearly $2 billion per year on average in catastrophic weather-related claims, up sharply from about $400 million annually between 1983 and 2008.

In recent years, annual insured losses have reached unprecedented levels, including $3.4 billion in 2022 and $9.4 billion in 2024. Meanwhile, premiums have increased faster than inflation, reflecting the growing cost of rebuilding homes and the escalating frequency of catastrophic events.

“Reducing cost pressures in the home insurance market means confronting the root cause: rising risk,” said Liam McGuinty, vice-president of federal affairs at IBC. “That requires a decisive shift to adaptation—investing in resilience, building in safer ways and locations, and taking action now to curb the growing damage from extreme weather.”

IBC is re-iterating its call for all orders of government to take immediate steps to reduce Canadians’ exposure to extreme weather events, including:

• Providing incentives for homeowners to invest in practical, affordable measures that reduce extreme weather damage and recovery costs;
• Building new homes away from high-risk flood and wildfire zones by strengthening land use planning and restricting development in areas at highest risk;
• When building in high-risk areas is unavoidable, requiring cost-effective, community-level mitigation measures, such as flood protection infrastructure and measures recommended by the comprehensive FireSmart program that are designed to help reduce the risk of wildfire damage;
• Investing in resilient infrastructure to protect communities from 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; and
• 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.

The full report from Statistics Canada can be accessed here.