Severe weather events in 2024 caused the second-highest insured losses to commercial properties in Canadian history, totalling over $1.7 billion, according to new data from Catastrophe Indices and Quantification Inc. (CatIQ).
The Insurance Bureau of Canada (IBC) released the figures, highlighting the increasing financial risks businesses face due to climate-related disasters. The municipality of Jasper, Alberta, experienced the most significant impact, accounting for nearly 40 percent of total commercial property losses last year. According to the IBC, the financial toll on businesses highlights the effects of extreme weather events and the challenges Canada’s insurance industry faces.
Liam McGuinty, vice president of strategy at the Insurance Bureau of Canada (IBC), emphasized the widespread damage businesses faced in 2024 and the ongoing challenges in recovery. He noted that insurers have been actively assisting businesses by providing financial support and guiding them through claims. Beyond the physical destruction, severe weather also disrupted business operations, supply chains, and the movement of goods and services across the Canadian economy.
Since 2010, over 132,000 businesses have suffered damage and filed insurance claims due to extreme weather. In the past five years alone, insured losses for homes, businesses, and vehicles have doubled, climbing from $10 billion to $20 billion. According to the report, the trend highlights the factors influencing insurance premiums nationwide and underscores the importance of strengthening Canada’s ability to withstand severe weather risks.
In a statement, McGuinty stressed the need for policy solutions to strengthen Canada’s resilience against climate-related risks. He called for urgent government action to make targeted investments in infrastructure that protects against flooding, strengthen land-use planning regulations to prevent development in high-risk flood areas and implement FireSmart best practices in communities vulnerable to wildfires. These measures, he said, would not only protect physical assets but also support a competitive and resilient commercial insurance market that benefits Canadian businesses.