9 weather and natural disasters caused the most expensive damage in Canada in 2023

From a record-breaking forest fire season to flooding and severe storms — Canada had many devastating events in 2023.

For the second year in a row, Canada exceeded $3 billion in insured damage from natural catastrophes and severe weather events in 2023, according to a press release from the Insurance Bureau of Canada (IBC).

Nationally, insured damage for severe weather events reached over $3.1 billion in 2023, according to Catastrophe Indices and Quantification Inc.

And 2023 is now the fourth-worst year for insured losses in Canada, according to IBC.

In its 10 top weather events for 2023, Environment Canada noted that wildfire records were “shattered” and 184,493 square kilometres of woodland up in smoke across Canada – the equivalent of nearly 1.5 times the size of the Maritime Provinces.

But fires weren’t the only story — there were powerful storms such as the April 5 freezing rain and heavy rain storm, which brought flooding to the Montreal and Ottawa area.

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Quebec saw record flooding in July and a tornado ripped through Alberta on Canada Day.

All these disasters mean more insurance claims, costs to governments and therefore taxpayers, which highlight the financial cost of climate change.

“The increasing frequency and severity of climate-related disasters should be of concern to all Canadians, even if they have yet to be directly affected,” said Craig Stewart, vice-president, climate change and federal issues for IBC.

Nine of the most severe weather events and the insured costs in 2023:

• Feb. 3–5 – Atlantic Canada cold snap ($120 million)
• April 5–6 – Ontario and Quebec spring ice storm ($330 million)
• May 28–June 4 – the Tantallon, Nova Scotia wildfire ($165 million)
• June 18–July 26 – Prairies summer storms ($300 million)
• July 20–Aug. 25 Ontario severe summer storms ($340 million)
• July 23 – Nova Scotia flooding ($170 million)
• Aug. 24 – the Winnipeg hailstorm ($140 million)
• Aug. 15–Sept. 25 -the Okanagan and Shuswap, B.C. area wildfires ($720 million)
• Aug, 13–Sept, 16 Behchokǫ̀-Yellowknife and Hay River, N.W.T. wildfires ($60 million)

After surveying insurers, IBC sees no change in the availability or affordability of wildfire insurance coverage across the country.

“However, as a result of escalating losses and revised risk modelling, Canada is viewed now as a riskier place to insure,” the press release states.

With today’s extreme weather events, insured catastrophic losses in Canada now routinely exceed $2 billion annually, and most of it is due to water-related damage.

Some Canadians can’t get flood insurance, and others find it difficult to afford other insurance for earthquakes and related hazards.

“The federal government committed to a national flood insurance program in last year’s Federal Budget. However, progress has stalled, leaving too many Canadians vulnerable to the effects of our changing climate,” said Stewart.

Canada’s property and casualty insurance industry supports a comprehensive and cost-neutral flood insurance program to replace the Disaster Financial Assistance and save governments and taxpayers money, according to IBC.

Stewart said he hopes that after seven years of study, government officials and home insurance professionals agree on this solution.

Here are the 10 most costly years for insurance:

See the full report here.

Main photo:  Recep Tayyip Çelik