Historic Commercial Losses from Severe Weather in Canada
TORONTO, March 13, 2025 – Devastating severe weather events in 2024 resulted in over $1.7 billion in insured losses to commercial properties across Canada. This marks the second-highest total in Canadian history for commercial property damage caused by extreme weather, according to data released by Catastrophe Indices and Quantification Inc. (CatIQ).
The bulk of these losses occurred during a concentrated 24-day period in the summer, when wildfires, floods, and hailstorms impacted communities across the country.
One area hit particularly hard was the Municipality of Jasper, Alberta, which accounted for nearly 40% of the commercial property losses due to extreme weather last year.
“Thousands of businesses were affected by the severe weather in 2024,” stated Liam McGuinty, Vice-President, Strategy, at the Insurance Bureau of Canada (IBC). “The historic damage underscores the escalating financial risks that Canadian businesses face from catastrophic weather events.”
“Canada’s insurers have been on the ground since these events took place and continue to support businesses across the country with financial support and by helping them navigate the recovery process,” McGuinty added. “These weather events not only caused physical damage but also disrupted business operations, supply chains, and the flow of goods and services across the Canadian economy. Recovery will take time, and insurers are committed to assisting at every stage.”
Costliest Commercial Loss Events in 2024
The most expensive events for insured commercial losses in 2024 were:
Since 2010, more than 132,000 businesses in Canada have suffered damage and filed insurance claims as a result of extreme weather events, according to CatIQ. As the financial impact of these events continues to climb, Canada’s insurers are playing a key role in offering stability, providing the resources that businesses need to recover and helping keep the economy moving forward during challenging times.
Top 10 Costliest Years for Commercial Insured Losses
The cost of insured losses for damage to homes, businesses, and vehicles has doubled in the last five years, climbing from $10 billion to a staggering $20 billion. This trend highlights the pressures on insurance premiums across the country and underscores the need for enhanced resilience to the risks that communities are facing from severe weather.
“As the risks associated with weather continue to increase year after year, it is imperative that we implement serious public policy solutions to improve Canada’s resilience,” McGuinty emphasized. “Canadian governments must act swiftly to make targeted investments in infrastructure designed to protect against floods, update land-use planning rules to ensure homes and businesses are not situated on flood plains, and to ensure that FireSmart best practices are implemented in communities at high risk for wildfires. These actions would protect the physical assets of the businesses at highest risk while safeguarding the broader community, thereby contributing to a competitive, responsive, and resilient commercial insurance market that offers solutions for businesses.”
About Insurance Bureau of Canada
Established in 1964, the Insurance Bureau of Canada (IBC) serves as the national industry association representing Canada’s private home, auto, and business insurers. Its member companies account for the majority of Canada’s highly competitive property and casualty (P&C) insurance market. As the principal advocate for Canada’s private P&C insurers, IBC works with governments, regulators, and stakeholders to support a competitive environment for the P&C insurance sector, ensuring it continues to help protect Canadians from ongoing and future risks. IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions for both individuals and businesses.
