Canada recorded one of its worst years for weather losses in 2022
No single event accounted for a majority of the losses seen during the past year, but disasters were seen across the country.
Canada experienced its third worst year on record for severe weather damages in 2022, according to the Insurance Bureau of Canada (IBC), which reported losses totaled $3.1 billion Canadian dollars ($2.2 billion).
The IBC noted that no single natural catastrophe accounted for a majority of the losses seen during the past year, but disasters were seen across the country.
This is in contrast to 2016, which saw 75% of insured damages caused by wildfires near Fort McMurray, Alberta. In 2016, Canadian losses totaled more than CA$5 billion, the highest for any year on record, according to IBC.
The IBC reported that losses stemming from extreme weather now regularly top $2 billion annually. During the decade prior to 2008, Canadian insurers average CA $456 million a year in severe weather-related losses.
“Canada is increasingly a riskier place to live, work and insure,” Craig Stewart, IBC vice president, climate change and federal issues. “In particular, we’re seeing early signs that property insurance may become less affordable or even unavailable as global reinsurers shift capacity away from riskier countries.”
The most damaging weather event of 2022 was Hurricane Fiona, which resulted in some CA$800 million, the IBC reported. Other events with notable losses during the past year include severe summer storms in Western Canada (CA$300 million), an Eastern Canada bomb cyclone (CA$180 million) and late-winter storms in Eastern Canada ($140 million).
On the Canadian regulation front, the federal government is considering a national flood insurance program, according to the IBC, which noted most G7 countries have similar insurance programs.
“Now is the time for Canadian insurers and governments to partner on a national flood insurance program to ensure Canadian homeowners remain financially resilient in the face of these growing number and severity of events,” Stewart said.
Related: