Canadians Urged to Review Insurance Coverage During Emergency Preparedness Week
The Insurance Bureau of Canada (IBC) is encouraging Canadians to assess their insurance coverage as part of broader emergency planning amid more frequent severe weather events. Data from Catastrophe Indices and Quantification Inc. (CatIQ) reveals that insured losses have reached unprecedented levels, averaging between $1.6 billion and $3.5 billion annually from 2019 through 2023, before surging to a record $8.9 billion in 2024.
The surge in claims is driven by more frequent and intense floods, wildfires, hailstorms, and wind events — hazards that have become increasingly costly for both insurers and policyholders. As Emergency Preparedness Week unfolds across Canada, the insurance industry is emphasizing the growing financial risks posed by extreme weather and the critical role insurance coverage plays in helping households and businesses recover.
“Insurance isn’t just a financial product — it’s a recovery tool,” the IBC noted. “Understanding what’s covered, what isn’t, and what steps can be taken to reduce risk is essential.” Industry observers warn that coverage gaps remain a concern, particularly for overland flooding or wildfire, which may require additional endorsements or be unavailable in some high-risk areas.
The IBC has renewed calls for a national flood insurance program to address protection gaps, particularly for homeowners in flood-prone zones. Governments at all levels are increasing investments in climate resilience, with recent initiatives including updated flood mapping, modernized stormwater infrastructure, and wildfire detection upgrades. For insurers, rising catastrophe losses are prompting greater scrutiny of exposure and pricing models, resulting in higher premiums and tighter underwriting for some policyholders in high-risk areas.
In response, insurers are urging Canadians to take proactive measures, ranging from reviewing policies and documenting possessions to installing sump pumps and fire-resistant materials. Many insurers have expanded public education efforts to help individuals and businesses better understand how to protect themselves physically and financially. “Emergency preparedness isn’t just about having a flashlight and bottled water,” the IBC stated. “It’s also about knowing you have the right insurance in place if the worst happens.”
