Insured commercial losses caused by severe weather exceeded $1.7 billion in 2024

TORONTO, March 13, 2025 /CNW/ - Last year's destructive severe weather not only took its toll on homeowners but, as data from Catastrophe Indices and Quantification Inc. (CatIQ) shows, insured losses to commercial properties reached the second-highest total in Canadian history at over $1.7 billion. The vast majority of commercial losses in 2024 occurred over the course of 24 days during the summer, when wildfires, floods and hailstorms ravaged communities across the country. The Municipality of Jasper, Alberta, was hit the hardest and accounted for nearly 40% of extreme weather losses to commercial property in 2024.

"Thousands of businesses felt the impacts of severe weather last year. The historic amount of damage in 2024 underscores the escalating financial risks Canadian businesses face from catastrophic weather events," said Liam McGuinty, Vice-President, Strategy, Insurance Bureau of Canada (IBC). "Canada's insurers have been on the ground since these events took place and continue to assist businesses across the country with financial support and navigating the recovery process. These severe weather events have caused not only physical damage, but have also disrupted business operations, supply chains and the flow of goods and services in the Canadian economy. Recovery will take time, and insurers will be there every step of the way."

Costliest events for commercial insured losses in 2024

Since 2010, over 132,000 businesses in Canada have suffered damage and filed insurance claims due to extreme weather events, according to CatIQ. As these events grow in cost, Canada's insurers are a source of stability providing the resources needed to help businesses recover and keep our economy moving in times of strain.

Top 10 costliest years for commercial insured losses

Over the past five years, the cost of insured losses for damage to homes, businesses and vehicles has doubled from $10 billion to a staggering $20 billion. This trend illustrates the pressures underlying insurance premiums across the country and is a clear reminder of the need to improve Canada's resilience to the risks our communities face from severe weather. 

"As weather-related risks continue to intensify year after year, we need to get serious about public policy solutions that make Canada more resilient," added McGuinty. "Canadian governments must move swiftly to make targeted investments in infrastructure that defends against floods, improve land-use planning rules that ensure homes and businesses are not built on flood plains, and that FireSmart best practices are followed in communities in high-risk wildfire zones. These actions would not only protect the physical assets of the businesses that are at highest risk, but would also safeguard the broader community, contributing to a competitive, responsive and resilient commercial insurance market that provides solutions for businesses."

About Insurance Bureau of Canada

Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up the vast majority of Canada's highly competitive property and casualty (P&C) insurance market.

As the leading advocate for Canada's private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow.

IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses.

For media releases, IN Focus articles or to book an interview with an IBC representative, visit ibc.ca. Follow us on LinkedIn, X and Instagram, and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC. We're here to help.

SOURCE Insurance Bureau of Canada