IBC - Insurance Bureau of Canada
IBC - Insurance Bureau of Canada
09/24/2024 | Press release | Distributed by Public on 09/24/2024 06:20
Summer 2024 shatters records for severe weather damage: Over $7 billion in insured losses from floods, fires and hailstorms
Insurance Bureau of Canada calls on governments to collaborate on reducing disaster risk
Four catastrophic weather events this summer caused a combined total of over $7 billion in insured losses, according to initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ).
Summer of 2024 now ranks as the most-destructive season in Canadian history for insured losses due to severe weather. In only two months, July and August, this summer eclipsed the worst year on record and has pushed the 2024 year-to-date tally to over $7.7 billion.
Insurers paid out $701 million annually, on average, for severe weather losses from 2001-2010; 2024 losses to date are over ten times that number.
"This has been a devastating summer for hundreds of thousands of Canadians. Relentless storms, fires and floods have resulted in approximately 228,000 insurance claims - a 406% increase compared to the 20-year average," said Celyeste Power, President and CEO, Insurance Bureau of Canada (IBC). "These events are escalating at a shocking rate and Canada is simply not prepared. The insurance industry is committed to working with governments across the country on a collaborative approach to adapting to our changing climate and building resilient communities. Canadians deserve this type of leadership from their elected officials and this level of commitment from the industry they rely so heavily upon."
Whole-of-society approach needed
IBC and its members have been calling on governments for nearly a decade to take action to adapt to Canada's changing climate. Insured losses from these events have been climbing for years, with this summer as a stark reminder that Canada has not done enough to prepare. IBC is calling on all governments to treat Canada's changing climate as the crisis it is and to collaborate on reducing disaster risk. The federal-provincial debates on how best to reduce emissions have overshadowed all efforts to coordinate and invest in climate adaptation. Governments must work together to plot a path forward that better protects communities and families across the country and avert an insurability crisis as millions of new homes are built.
"Insurers are now paying out more in claims for a single event than the $1.9 billion that the federal government has allocated to climate adaptation over the past decade," said Craig Stewart, Vice-President, Climate Change and Federal Issues, IBC. "Canada needs to get ready for the next disaster. This is not the time for finger pointing, this is the time for governments and the private sector to work together to better protect Canadians and our communities. This is a whole-of-society challenge and requires all leaders and stakeholders to come together to develop a national action plan to ensure Canada is better protected. We all have a role to play in helping communities prepare for and recover from severe weather events."
"In June 2023, the federal government launched an impressive National Adaptation Strategy but little progress has been made towards achieving its targets at any order of government," added Stewart. "As costs from climate fueled disasters mount, action from governments to reduce risk is stalled. Municipalities are being funded to build new homes on flood plains and areas prone to wildfire. Other orders of government need to support resilient building so that insurance is available and affordable for homeowners in the future; this includes investments in disaster mitigation such as flood defenses, upgrades to stormwater infrastructure, and programming to help fire- and flood-proof new and existing homes."
Insured losses due to catastrophic weather are increasing
Below is the breakdown of insured losses for just the four catastrophic weather events of summer 2024:
The amount of insured damage are estimates provided by CatIQ (www.CatIQ.com) under license to IBC.
Questions about a claim?
Consumers with questions about their claim are encouraged to contact their insurance representative. For general insurance inquires, consumers can contact IBC's Consumer Information Centre at 1-844-2ask-IBC (1-844-227-5422).