According to a new report from Catastrophe Indices and Quantification Inc. (CatIQ), the August 2024 hailstorm that pounded the northern parts of Calgary was the costliest in a year of expensive weather-related losses for insurers.
That cost was calculated to be $3 billion, out of a total in $8.5 billion in weather-related losses across Canada.
It also outpaced other major weather related disasters, like that of the Jasper wildfire that led to $1.1 billion in July, and the $2.7 billion in damage caused to Quebec by the remnants of Hurricane Debby in August.
“Sadly, beyond the staggering financial losses are hundreds of thousands of Canadians whose lives and livelihoods have been upended,” said Celyeste Power, CEO of the Insurance Bureau of Canada (IBC).
“Canada’s property and casualty insurers have been there every step of the way, and continue to be on the ground, helping their customers rebuild and recover. The industry is doing its part, but it’s time for governments to take decisive action to protect Canadians from these escalating and dangerous events.”
Summer months lead to record breaking losses
The summer of 2024 stood out as the single most destructive season in Canada in history for insured losses due to weather-related events like flooding, wildfire, and hailstorms, the report read.
Of the $8.5 billion in losses, $7 billion of those were incurred in July and August of last year.
The previous record year was in 2016, which saw the Fort McMurray fires in northern Alberta lead to $6.2 billion in losses.
Hailstorms in Calgary also led to record years for losses in 2020 and 2021, with $2.52 and $2.56 billion in national losses during those years.
“Canada is clearly becoming a riskier place to live, work and insure. As insurers price for risk, this increased risk is now impacting insurance affordability and availability,” said Craig Stewart, Vice-President for Climate Change and Federal Issues at the Insurance Bureau of Canada.
“Governments need to invest in infrastructure that defends against floods, adopt land-use planning rules that ensure homes are not built on flood plains, facilitate FireSmart in communities in high-risk wildfire zones and implement long-delayed building codes that better protect homes and livelihoods.”
The IBC said that they were watching the fires that have been occurring in California, and that similar pressures could cause insurers in Canada to raise the alarm in regions that might also be susceptible to wildfire.
“While insurance covering wildfires remains widely available, the increased frequency and severity of weather related losses continues to create claims cost pressures that will impact the cost of insurance,” said the IBC.
Since 2019, Canada has experienced a 115 per cent increase in the number of claims for personal property damage and a 485 per cent increase in the costs for repairing and replacing personal property. the IBC said.
The Government of Alberta has invested $19 million to support the emergency fireguard construction in the province since 2023.
The City of Calgary reduced assessments of homes in hailstorm affected communities by $1 billion during the 2025 property assessment cycle.
