Key Takeaways:
- Insured damages from severe weather in 2025 exceeded $2.4 billion, making it the 10th-highest year on record for insured loss.
- The severity and frequency of severe-weather events continue to intensify, with insured losses tripling over the past decade.
- The average number of insurance claims has nearly doubled over the past decade, with annual insured losses totaling $37 billion between 2016 and 2025.
- Governments are being called upon to take action to improve where and how housing is built to reduce the risk of damage from severe weather events.
Introduction to Severe Weather Events
After a year of devastating natural disasters, including wildfires, flooding, and a major ice storm, the total insured damages from severe weather in 2025 reached a staggering $2.4 billion. According to the Insurance Bureau of Canada (IBC), this total is based on data from Catastrophe Indices and Quantification Inc., which is licensed to IBC. The numbers are a stark reminder of the increasing severity and frequency of severe-weather events in Canada. Maximilien Roy, IBC’s vice-president of strategy, notes that the trend of increasing insured losses has been evident for years, with the past decade seeing a tripling of losses compared to the previous decade.
Trends in Insured Losses
The data on insured losses is alarming, with annual insured losses between 2006 and 2015 totaling $14 billion, compared to $37 billion between 2016 and 2025. This represents a significant increase in the frequency and severity of severe-weather events. Furthermore, the average number of insurance claims has nearly doubled over the past decade, indicating that more people are being affected by these events. Roy emphasizes that while the total insured loss in 2025 may be lower than in 2024, it is still a significant amount and part of a larger trend of increasing losses. He notes that two decades ago, insured losses seldom surpassed $500 million a year, but today, annual costs exceed $1 billion.
Notable Severe Weather Events
The severe weather events of 2025 were numerous and widespread, with several notable events contributing to the total insured loss. The Quebec and Ontario ice storm of March 28 to 31 saw approximately $490 million in insured damages, while the Flin Flon, Manitoba, and La Ronge, Saskatchewan, wildfires in May totaled about $300 million. The Calgary hailstorm hit $160 million, and the August severe storms in the Prairies totaled $235 million. Additionally, the series of atmospheric rivers in British Columbia last month resulted in $90 million in insured damages. These events highlight the diverse range of severe weather events that can affect different regions of Canada.
Government Action
The IBC is calling on governments of all levels to take action to improve where and how housing is built to reduce the risk of damage from severe weather events. Roy emphasizes that building homes away from flood-hazard areas and changing building codes to use materials that are less prone to damage can help mitigate the impact of these events. He notes that while affordability is a critical consideration, the most expensive home is the one that needs to be rebuilt once or twice. By taking proactive steps to improve the resilience of homes and communities, governments can help reduce the economic and social impacts of severe weather events.
Conclusion
In conclusion, the total insured damages from severe weather in 2025 are a stark reminder of the increasing severity and frequency of these events. The data highlights the need for governments to take action to improve where and how housing is built to reduce the risk of damage. By working together, we can reduce the economic and social impacts of severe weather events and create more resilient communities. As Roy notes, "We know that affordability is really critical, but the most expensive home you can build is the one you need to rebuild once or twice." By prioritizing resilience and mitigation, we can build a safer and more sustainable future for all Canadians.