Insured cat losses in 2024 in Canada hit record

Severe weather events caused more than 8.5 billion Canadian dollars ($5.9 billion) in insured damage in 2024, making it the costliest year on record, Canada-based Catastrophe Indices and Quantification Inc. said in a statement Monday.

The previous record was CA$6 billion in 2016 following the Fort McMurray wildfires, CatIQ said.

An August hailstorm in Calgary, Alberta, that caused CA$3 billion in insured losses in just over an hour was the most destructive weather event recorded last year. Flooding continued to cause significant damage in nearly every region of the country, CatIQ said.

The summer of 2024 was the most destructive season in Canadian history for insured losses due to wildfires, floods and hailstorms.

Four catastrophic weather events in July and August resulted in over CA$7 billion Canadian in insured losses and over 250,000 insurance claims. Notable events included the remnants of Hurricane Debby in Quebec (CA$2.7 billion) and the Jasper wildfire (CA$1.1 billion) in August.

Last year’s total is nearly triple the CA$3.1 billion in total insured losses recorded in 2023 and 12 times the CA$701 million annual average in the decade between 2001 and 2010.

The increased frequency and severity of weather-related losses continue to create claims cost pressures that will impact the cost of insurance, according to the Insurance Bureau of Canada.