Data from Catastrophe Indices and Quantification Inc. (CatIQ) showed that insured losses to commercial properties due to severe weather in 2024 reached more than $1.7 billion, marking the second-highest total in Canadian history.
Most of these losses occurred over 24 days during the summer, when wildfires, floods and hailstorms impacted multiple communities. The municipality of Jasper, Alberta, recorded the highest losses, accounting for nearly 40% of commercial property damage from extreme weather events, according to the data.
“Thousands of businesses felt the impacts of severe weather last year. The historic amount of damage in 2024 underscores the escalating financial risks Canadian businesses face from catastrophic weather events,” said Liam McGuinty, vice-president of strategy, Insurance Bureau of Canada (IBC). “Canada’s insurers have been on the ground since these events took place and continue to assist businesses across the country with financial support and navigating the recovery process.”
These severe weather events, McGuinty said, have not only caused physical damage but also disrupted business operations, supply chains and the flow of goods and services in the Canadian economy.
“Recovery will take time, and insurers will be there every step of the way,” he added.
The costliest event for commercial insured losses in 2024 was the Jasper wildfire, which caused $650 million in damage. That compares with the remnants of Hurricane Debby which resulted in $360 million in losses, followed by the Calgary hailstorm at $280 million. Flash flooding in the Greater Toronto Area and Southern Ontario led to an additional $190 million in commercial property damage.
Since 2010, more than 132,000 businesses in Canada have sustained damage and filed insurance claims due to extreme weather, according to CatIQ. As the financial impact of these events increases, insurers continue to provide resources to help businesses recover and maintain economic stability.
The year 2024 ranked as the second costliest year for commercial insured losses in Canada, surpassed only by 2016, when the Fort McMurray wildfire caused nearly $1.92 billion in losses.
Other significant years for commercial property damage include 2013, with $1.72 billion in losses due to flooding in Southern Alberta and the Greater Toronto Area, and 2022, when Hurricane Fiona and a derecho in Ontario and Quebec led to $946 million in claims.
Over the past five years, insured losses from damage to homes, businesses, and vehicles have doubled from $10 billion to $20 billion. This increase highlights the factors influencing insurance premiums and the need to strengthen Canada’s resilience to severe weather risks.
McGuinty said that Canadians need to get serious about implementing public policy solutions as weather-related risks continue to intensify year after year. He urged Canadian governments to make targeted investments in infrastructure that will defend against floods, improve land-use planning rules that ensure homes and businesses are not built on flood plains, and strictly implement the FireSmart best practices in communities in high-risk wildfire zones.
“These actions would not only protect the physical assets of the businesses that are at highest risk, but would also safeguard the broader community, contributing to a competitive, responsive and resilient commercial insurance market that provides solutions for businesses,” he said.
