Statistics Canada Report Confirms Extreme Weather Reshaping Canada's Home Insurance Market
OTTAWA, ON, June 17, 2026 – A new report released yesterday by Statistics Canada underscores a growing reality for Canadians: extreme weather is fundamentally reshaping the country's home insurance market. The study reveals that higher claims costs, increasing premiums, and too many households exposed to catastrophic damage risk are now the norm.
Key Findings from the Report
The study, titled “Extreme weather impacts on consumers and insurers in Canada, December 2019 to December 2025: An updated analysis,” finds that extreme weather events are becoming more frequent, more severe, and more costly. This places sustained pressure on Canadian insurers and homeowners alike.
- 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.
- Annual insured losses have reached unprecedented levels, including $3.4 billion in 2022 and a staggering $9.4 billion in 2024.
- Insurance premiums have increased faster than inflation in recent years, reflecting the growing cost of rebuilding homes and the escalating frequency of catastrophic events.
Insurance Bureau of Canada Calls for Action
“Natural disasters are reshaping the home insurance landscape for Canadians from coast-to-coast,” said Liam McGuinty, Vice-President, Federal Affairs, Insurance Bureau of Canada (IBC). “The increased frequency and severity of extreme weather events are driving up claims costs and putting pressure on home insurance premiums across the country.”
The report highlights that natural catastrophes are no longer rare events, with four of the last five years now ranking among the 10 costliest on record. Without stronger risk reduction measures, IBC warns that Canadians will continue to face rising insurance costs and growing exposure to loss.
Recommended Actions for Governments
In light of the report’s findings, IBC is reiterating its call for all orders of government to take immediate steps to reduce Canadians’ exposure to extreme weather events. These steps include:
- 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.
- Requiring cost-effective, community-level mitigation measures when building in high-risk areas is unavoidable, such as flood protection infrastructure and measures recommended by the comprehensive FireSmart program designed to reduce wildfire damage risk.
- 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.
- 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.
