July flash floods in Toronto and southern Ontario caused over $940 million in insured damage

Severe weather events across Canada show governments must do more to help Canadians prepare and recover

TORONTO, Aug. 19, 2024 /CNW/ – Intense flash flooding that occurred in Toronto and other parts of southern Ontario between July 15-16, 2024, is estimated to have caused over $940 million in insured damage, according to initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ).

“The insurance industry has long warned that severe weather events are becoming more frequent and intense. This summer is, unfortunately, proving that statement is correct,” said Amanda Dean, Vice-President, Ontario and Atlantic, Insurance Bureau of Canada (IBC). “This summer, Canada’s insurers have been simultaneously supporting customers impacted by the Toronto floods, the Calgary hailstorm, the Jasper wildfire and flooding across Quebec. The insurance industry is on the ground in Ontario, Alberta and Quebec, assisting customers as they put their lives back together. The emotional distress that these events have caused thousands of Canadians cannot be overlooked.”

The insurance industry is also in the early stages of responding to flooding that occurred in Toronto and Montreal just this past weekend. Insurers will also be there for the customers impacted by the tornado that touched down in Ayr, Ontario, on the weekend.

These simultaneous events have placed immense pressure on insurance adjuster resources for many insurers. IBC is working with governments and regulators across the country to address adjuster capacity across Canada. Adjuster access is critical following natural catastrophes, as they ensure the industry can support consumers as quickly as possible.

“With several large natural disasters in the span of one month, including another round of torrential downpours in the Greater Toronto Area over the weekend, coupled with skilled labour shortages and supply chain issues, we are urging affected customers to be patient. Rebuilding will take time,” said Craig Stewart, Vice-President, Climate Change and Federal Issues, IBC. “IBC and its members are calling on governments to improve disaster preparedness and recovery across the country.”

“Unless the federal government commits the necessary resources this fall to stand up the National Flood Insurance Program while Provinces and Territories commit to mitigating flood risk, insurers will not be able to support the program before the next federal election. This is the single, most-important step the government can take to better protect homeowners from the financial risks of climate change,” Stewart continued. “Governments have to make the hard choices to stop building and rebuilding on flood plains, invest in disaster mitigation including upgrades to stormwater infrastructure, and roll out programs to fire- and flood-proof homes.”

As reported by IBC earlier this year, severe weather in 2023 caused over $3.1 billion in insured damage across Canada. IBC is continuing to engage with the federal and provincial governments on ways to improve the climate resilience of communities across the country. Insured losses related to severe weather in Canada now routinely exceed $2 billion annually. By comparison, between 2001 and 2010, Canadian insurers averaged $675 million a year in losses related to severe weather.

The amount of insured damage is an estimate provided by CatIQ (www.catiq.com) under licence to IBC.

About Insurance Bureau of Canada

Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up the vast majority of Canada’s highly competitive property and casualty (P&C) insurance market.

As the leading advocate for Canada’s private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow.

IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses.

For media releases, IN Focus articles, or to book an interview with an IBC representative, visit ibc.ca. Follow us on LinkedIn, X and Instagram, and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC’s Consumer Information Centre at 1-844-2ask-IBC. We’re here to help.

SOURCE Insurance Bureau of Canada