The Decibel How the L.A. wildfires could increase Canadian insurance rates
Jan 23, 2025
In this discussion, Salman Farooqui, a journalist for the Globe and Mail’s Report on Business specializing in natural disaster economics, unpacks the devastating impact of the L.A. wildfires, which could lead to skyrocketing insurance rates across Canada. He highlights the staggering financial implications, estimating losses could reach $275 billion. Farooqui also delves into how Canada’s insurance industry is adapting to these trends and discusses essential strategies homeowners can adopt to mitigate risks and potentially save on insurance costs.
AI Snips
Chapters
Transcript
Episode notes
Record Insurance Losses
- 2024 is the most expensive year for insurable losses in Canada, reaching $8.5 billion.
- This surpasses the previous record of $6 billion in 2016, following the Fort McMurray fires.
Cost Breakdown
- Hailstorms and floods often cause more widespread damage than wildfires, leading to higher costs.
- In 2024, the Calgary hailstorm caused $3 billion in damage, while the Jasper wildfire caused $1.1 billion.
Increasing Insurance Claims
- Insurance claims for natural disasters are increasing.
- Average losses were around $700 million annually between 2001 and 2010, but now regularly reach billions.