Facing the Storm: How Severe Weather is Reshaping Canadian Insurance Premiums and Preparedness
Nearly one-third of all claims over the past decade stemmed from major weather or climate-related catastrophes. Let's talk about it.
Jenny Holly Hansen
By Jenny Holly Hansen | WBN News | April 28, 2025As Canadians continue to face the mounting effects of climate change, the insurance industry is experiencing a dramatic shift — one driven by both rising claims and a growing sense of vulnerability among homeowners. A recent article from Canadian Underwriter paints a striking picture: nearly one-third of all claims over the past decade stemmed from major weather or climate-related catastrophes, according to Allstate Insurance Company of Canada.
A New Era of Natural Catastrophes
The data is clear: not only are catastrophic weather events becoming more frequent, but they are also increasing in severity. In 2024 alone, large-scale natural disasters resulted in the highest number of claims Canada has seen in a decade — roughly 2.4 times the volume reported in 2023. This surge translated into more than 273,000 individual insurance claims related to storms, floods, and wildfires, a number nearly 188% higher than the historical annual average.
The financial implications are equally staggering. For the first time in Canadian history, insured damage from severe weather events surpassed $8 billion, as reported by Catastrophe Indices and Quantification Inc. (CatIQ).
Homeowners Are Feeling Exposed
Despite the visible increase in risk, a recent Léger poll conducted for Allstate reveals a troubling insight: only 27% of Canadian homeowners feel very confident that their homes are prepared for a major weather event. This disconnect between perceived preparedness and the real, rising risk underscores a critical need for education, risk mitigation, and tailored insurance coverage.
At the same time, personal property and auto premiums are on the rise. Hub International's Q1 2025 rate outlook attributes increases of 5% to 10% to the impact of 2024’s record-setting catastrophes, alongside ongoing regional challenges in Alberta and Ontario.
Commercial Markets Show Stability — For Now
Interestingly, commercial insurance appears to be less affected. Despite the sharp rise in Cat losses, rates for middle-market commercial businesses have remained “competitive to flat” going into Q1 of 2025, according to Hub. In some cases, lines like cyber and commercial property — which previously saw rapid increases — are now stabilizing or even seeing rate reductions, thanks to increased insurer competition.
The Broader Landscape: Beyond the Weather
While severe weather is the headline, it’s not the whole story. Broader economic and geopolitical factors — including inflation, litigation trends, and political instability — continue to put pressure on insurance pricing across all lines. Regulatory shifts and trade tensions in Canada, the U.S., and Mexico further complicate the landscape. Tariffs and supply chain disruptions, for instance, have driven up rebuilding costs, particularly in catastrophe-prone areas, contributing to ongoing pricing volatility.
Moving Forward: What This Means for Policyholders
For Canadian homeowners and businesses alike, the message is twofold: preparedness matters, and so does policy review. With the rise in claims and cost pressures, ensuring your insurance program is up to date — and truly reflective of the risks you face — is more critical than ever.
Whether it’s evaluating your property’s vulnerability to natural disasters or assessing your coverage in light of evolving market trends, now is the time to take a proactive approach. The weather may be beyond our control, but the resilience of your coverage doesn’t have to be.
Let’s Keep Talking:
Jenny is a business insurance broker with Waypoint Insurance.
She is also a business development consultant with Impresario Partners, helping Canadian Business expand overseas.
She can be reached at 604-317-6755 or jholly-hansen@wbnn.news. Connect with Jenny on LinkedIn at https://www.linkedin.com/in/jenny-holly-hansen-365b691b/. Connect with Jenny at BlueSky: https://bsky.app/profile/jennyhollyhansen.bsky.social
Let’s Meet Up:
Jenny Holly Hansen is a cohost with Chris Sturges of the Langley Impact Networking Group. You are welcome to join us on Thursday’s from 4pm to 6pm at: Sidebar Bar and Grill: 100b - 20018 83A Avenue, Langley, BC V2Y 3R4
TAGS: #Jenny Holly Hansen #Severe Weather #Canadian Insurance Premium #Catastrophe Indices and Quantification Inc (CatIQ)
Members Discussion