An illustration provided by The Weather Network shows the 2025 summer forecast. THE CANADIAN PRESS/HO-The Weather Network
A new report from Statistics Canada has been released, and outlines how the increase in extreme weather events from 2019 to now is impacting insurance rates and consumer cost.
According to the report, extreme weather keeps getting worse, and it’s showing up in the insurance world in a big way. Big storms and disasters are costing insurers billions every year, and that’s pushed home and mortgage insurance prices up faster than overall inflation. Alberta has taken more than its fair share of hits, with hail, floods, and wildfires driving some of the highest losses in the country.
Auto insurance isn’t as tied to extreme weather, but it’s still climbing because repairs cost more, vehicles are pricier, and thefts are up. Insurers have been raising rates to keep up with higher claims and operating costs, which is why premiums look so different from one province to another. Cities are feeling the pressure too, as extreme weather damages roads, bridges, and other public infrastructure.
On top of all that, reinsurance has become more expensive, especially after a major spike in 2023. And even with all these rising costs, the amount of damage that isn’t insured still outweighs what insurers actually cover, leaving households and governments to pick up the rest.
The report also states that catastrophic claims caused by extreme weather, exacerbated by climate change, (CAT events) increased substantially in 2024. 9.1 billion in total claims, and within 30 days, four CAT events occurred. Between the hail storm that disproportionately affected Calgary, the Jasper wildfire, 2024 was the costliest year since 2016.
8 of the top 10 most costly weather events have taken place since 2013 as well. Despite 2025 being more lax in terms of extreme weather, Canadians still saw an increase in cost as insurers raised prices to meet pressures.
Insurance expenses that are affected by claims costs are up 50.1% since 2020, and housing costs saw a 55.8% bump, highest in the country, from 2020 to 2025.
The report finishes with a statement saying consumers, insurers and government must work together to work toward solutions. It also said, ” In 2026 the Canadian Climate Institute estimated that $4 billion in annual proactive infrastructure adaptation could yield $5 to $10 billion in avoided costs, underscoring the need for coordinated adaptation actions.”
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