Insurable losses from natural disasters – how have the numbers changed over the years?

Insurable losses from natural disasters – how have the numbers changed over the years? | Insurance Business Canada

Catastrophe & Flood

Insurable losses from natural disasters – how have the numbers changed over the years?

New study reveals eye-watering figures

Catastrophe & Flood

By
Terry Gangcuangco

Canadian insurtech MyChoice has released a new study showing a sharp rise in insurable losses linked to natural disasters over the past four decades.

The analysis, drawing from Canadian Disaster Database statistics, compared the 10-year average of disaster-related insurable losses with the previous 30-year average, adjusted for inflation. The study also examined home insurance inflation across Canada using the Shelter Consumer Price Index over the last 10 years, comparing these figures to the current rates in MyChoice’s quote database.

The report revealed a staggering 379% increase in average annual insurable losses in Canada during the past decade compared to the preceding three decades. The dramatic rise was particularly acute in provinces such as Alberta and Saskatchewan, where average annual losses surged by 495% and 302% respectively. In Ontario, the increase was smaller but still significant, with an 89% jump in losses.

Province

Change in

average annual

insurable

damages

Average annual

home insurance

premium (2014)

Average annual

home insurance

premium (2024)

Home insurance

inflation (2014-

2024)

Quebec

17.05 %

$618

$905

46.53 %

Ontario

88.94 %

$627

$1,155

84.24 %

New Brunswick

-86.62 %

$412

$719

74.68 %

Nova Scotia

-23.98 %

$407

$728

78.70 %

Newfoundland

158.92 %

$408

$718

76.08 %

Prince Edward Island

n/a

$455

$715

57.19 %

Alberta

494.96 %

$696

$1,324

90.32 %

British Columbia

6.25 %

$701

$1,250

78.44 %

Manitoba

80.86 %

$574

$949

65.47 %

Saskatchewan

302.13 %

$491

$1,012

106.32 %

Canada

379.28 %

$539

$948

76.04 %

Source: MyChoice Database, Statistics Canada, Canadian Disaster Database

Interestingly, some provinces did not see a notable increase in climate-related damages but still experienced higher home insurance costs. These areas have absorbed some of the risk generated by climate-related disasters elsewhere in the country.

The data suggests that climate-related disasters have cost the average Canadian an additional $409 per year in home insurance premiums over the past 10 years. Overall, home insurance premiums have risen by 76% across Canada during this period, with Saskatchewan and Alberta seeing the steepest hikes at 106% and 90%, respectively.

“As climate change continues to reshape the Canadian insurance landscape, it’s more important than ever to regularly reassess your home insurance coverage,” said MyChoice chief operating officer Matt Roberts (pictured). “In the face of rising premiums and increased claims, finding the right balance between affordability and adequate protection is crucial.

“At MyChoice, we essentially offer you tools and resources to navigate the changing market and ensure that you’re not overpaying for coverage while staying protected from the growing risks of climate change.”

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