Toronto/Ontario flash flooding drives $940m in insured damage: CatIQ

According to initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ), the flash flooding in Toronto and other parts of southern Ontario between July 15-16, 2024, is estimated to have caused over $940 million in insured damage.

Amanda Dean, Vice-President, Ontario and Atlantic, Insurance Bureau of Canada (IBC), commented, “The insurance industry has long warned that severe weather events are becoming more frequent and intense. This summer is, unfortunately, proving that statement is correct.

“This summer, Canada’s insurers have been simultaneously supporting customers impacted by the Toronto floods, the Calgary hailstorm, the Jasper wildfire and flooding across Quebec.

“The insurance industry is on the ground in Ontario, Alberta and Quebec, assisting customers as they put their lives back together. The emotional distress that these events have caused thousands of Canadians cannot be overlooked.”

As per the IBC, severe weather in 2023 has caused over $3.1 billion in insured damage across Canada.

In fact, insured losses related to severe weather in Canada now reportedly routinely exceed $2 billion annually. By comparison, between 2001 and 2010, Canadian insurers averaged $675 million a year in losses related to severe weather.

Craig Stewart, Vice-President, Climate Change and Federal Issues, IBC, said, “With several large natural disasters in the span of one month, including another round of torrential downpours in the Greater Toronto Area over the weekend, coupled with skilled labour shortages and supply chain issues, we are urging affected customers to be patient.

“Rebuilding will take time. IBC and its members are calling on governments to improve disaster preparedness and recovery across the country.”

Stewart continued, “Unless the federal government commits the necessary resources this fall to stand up the National Flood Insurance Program while Provinces and Territories commit to mitigating flood risk, insurers will not be able to support the program before the next federal election.

“This is the single, most important step the government can take to better protect homeowners from the financial risks of climate change. Governments have to make the hard choices to stop building and rebuilding on flood plains, invest in disaster mitigation including upgrades to stormwater infrastructure, and roll out programs to fire- and flood-proof homes.”

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