Impact of Natural Disasters on Insurance Costs

Natural disasters are resulting in significant financial losses, with 2024 marking a record year for insurable losses in Canada, totaling $8.5 billion. Factors contributing to these losses include devastating wildfires, floods, and hailstorms, with the Calgary hailstorm being the most expensive event at $3 billion in damages, while the Jasper wildfire amounted to $1.1 billion. Previous years saw an average of $701 million in losses, highlighting an alarming trend of increasing damage and financial burden from extreme weather events. Such trends are driving insurance companies to adjust their practices and pricing models, affecting consumers across the country.