Canadas extreme weather events are costing billions, new data shows [Video]

The increasing rate of natural disasters like wildfires, frigid cold and hurricanes is leaving many Canadians and their insurers forking out billions of dollars, according to a new study from Statistics Canada.

From 1983 to 2008, insurance companies in the country spent about $400 million on average annually on catastrophic claims, but since 2009 that number has rise to almost $2 billion. Recent hurricanes, floods and historical wildfires saw that number balloon to $3.4 billion in 2022 and $3.1 billion last year — 50 per cent more than the yearly average.

“Insurance rates are always going to be reflective of the current condition of the market and the kind of claims being paid out on a year-to-year basis,” Rates.ca insurance expert Daniel Ivans said. “As average claims begin to increase, as payouts increase, insurance premiums will match that.”

With more claims, the study by StatCan notes that insurers are in turn facing more risk with reinsurance rates …