Rising Home Insurance Premiums in Canada Due to Increased Storm-Related Losses
The Canadian home insurance sector is experiencing significant transformations due to increasing storm-related losses and rising premiums. A Statistics Canada report reveals that in 2024, catastrophic weather resulted in a record $8.6 billion in claims, with premiums surging by 45% from December 2019 to December 2025. This sharp increase outpaces the 21% rise in the overall Consumer Price Index during the same period.
The report, titled "Extreme weather impacts on consumers and insurers in Canada, December 2019 to December 2025," highlights that once-rare weather events have become a persistent challenge for insurers. Since 2009, insurers have contended with an average of $2 billion in annual claims from catastrophic weather, escalating from $400 million on average from 1983 to 2008. Each year from 2020 to 2025 ranked among the ten most costly for such claims since 1983.
In 2024, the third quarter was particularly devastating, with four major events causing significant financial strain within just 30 days. These included a $3 billion hailstorm in Calgary, $2.7 billion in Quebec flooding, a $1.1 billion wildfire in Jasper, and $990 million in claims from Ontario floods, all contributing to the year's record total. "Natural disasters are reshaping the home insurance landscape for Canadians coast-to-coast," stated Liam McGuinty, vice-president of Federal Affairs at the Insurance Bureau of Canada (IBC).
Alberta has experienced the steepest rise in home insurance premiums, with a 391.6% increase over two decades ending in December 2025, the most pronounced among provinces. From 2020 to 2025, Alberta's increase of 55.8% was the highest, followed by Manitoba at 46.7%, Nova Scotia at 43.1%, and Saskatchewan at 40.9%, surpassing the national average of 38.6%, as stated by Statistics Canada.
Flood risks are influencing housing affordability and affecting qualification and renewal discussions across the country. Aren Mirzaian, CEO of MyChoice, a digital insurance broker, noted the growing importance of protection costs in housing affordability considerations. Despite widespread concerns, recent findings from Desjardins Insurance indicate that fewer than one-third of homeowners have implemented protective measures, although 82% suggested financial incentives would motivate action.
Addressing Rising Risks
From 2016 to 2025, insured losses from catastrophic weather events and wildfires amounted to approximately $37 billion, nearly three times the losses of the prior decade. The IBC is advocating for decisive governmental action, including enhanced land-use planning, infrastructure investment, and fortified building codes. "Reducing cost pressures in the home insurance market means confronting the root cause: rising risk," McGuinty noted, emphasizing the need for adaptation through resilience and preemptive strategies.