Canada has seen insured losses exceeding $3 billion in 2023, driven predominantly by secondary peril events, according to CatIQ.
Severe convective storms, floods, and wildfires have taken the forefront in the country’s disaster landscape, making it a year marked by costly catastrophes.
This disconcerting development comes as a stark reminder of the rising threat of extreme weather events in Canada, pushing both the government and the insurance industry to seek effective solutions to mitigate the ever-increasing financial burden posed by such catastrophes.
Wildfires have been a major contributor to these losses. In British Columbia alone, insured losses surpassed $720 million due to rampant wildfires, leaving insurers grappling with the financial impact. The wildfires also contributed significantly to the overall figures, with warnings that losses from these events could potentially reach into the billions.
Meanwhile, summer storms that swept across Alberta and the prairies caused over $300 million in insured losses, further exacerbating the situation. Intact Financial reported catastrophe losses of $570 million in the third quarter of 2023, reflecting the substantial financial burden that the insurance industry has had to bear this year.
Nova Scotia faced devastating flooding events that resulted in over $170 million in insured damage, compounding the financial strain on insurers. As the country grapples with these extreme weather occurrences, the need for resilience and mitigation measures becomes more pressing.
The ominous forecast of Canada’s wildfire losses, which could potentially reach into the billions, has continued to mount concerns, according to Aon. DBRS report suggests that wildfire-related insured losses in the third quarter alone could hit a staggering $1.5 billion.
