Canada Insurers Sound Climate Alarm Amid Soaring Claims

Canadian property and casualty insurers are facing financial pressure due to soaring wildfire and flood claims, leading to a 6% rise in home insurance premiums last year. Industry leaders, including Definity Financial, are urging the government to take climate change more seriously, expressing concern that current economic priorities overshadow escalating climate risks. Despite strong profits, insurers are investing millions in promoting flood and wildfire resilience among policyholders through claim settlements and discounts for home upgrades.

Insurers are also advocating for policy changes, proposing updated building codes, investments in natural infrastructure, and restrictions on new construction in high-risk areas. They are particularly worried that the government's housing initiatives may not adequately account for severe weather risks, with plans including new homes in flood and wildfire zones. While the government states climate remains a critical issue, insurers argue that public investment does not match the reality of increased severe weather events, which can now cause a year's worth of losses in a single day.