Flooding during August in the Greater Toronto Area and parts of southern Ontario caused more than $100 million in insured damage, says the Insurance Bureau of Canada (IBC).
On Aug. 17 and 18, heavy rainfall and thunderstorms resulted in significant flood damage in Mississauga, Etobicoke, and other parts of the GTA. A tornado also touched down in Ayr, Ont. causing notable damage to property.
Ontario was hit by two catastrophic floods this summer, resulting in more than $1 billion in insured damage, the national industry association representing Canada’s private home, auto, and business insurers said.
On July 16, a flash flood that heavily affected a number of parts of the Toronto area led to more than $940 million in insured damage, said the IBC, which noted that this year’s losses were only surpassed by the 2013 floods in Toronto.
“Ontarians have been hit hard by flooding this year, and the damage we’ve seen is unprecedented,” said Amanda Dean, the IBC’s vice-president from Ontario and Atlantic, said in a news release.
“The insurance industry has been on the ground since day one of the July flooding, assisting customers as they rebuild and put their lives back together. The emotional distress that this summer’s floods have caused thousands of Ontario residents cannot be overlooked. Rest assured, insurers will continue to support their customers until the very end of the claims process.”
The IBC said that this summer has been the most destructive season in Canadian history, with 2024 shaping up to be one of, if not the highest, years on record in the country for insured damage losses due to severe weather.
On average, from 2001 to 2010, insurers paid out $701 million in claims annually. Those payouts for 2024 are now more than 10 times that amount at $7.7 billion.
“Insured losses from catastrophic weather events have been climbing for years, with this summer serving as a stark reminder that Canada has not done enough to prepare,” said Craig Stewart, IBC’s vice-president of climate change and federal issues, in a release.
“IBC has been calling on all governments to treat Canada’s changing climate as the crisis it is and to collaborate on reducing disaster risk. The federal-provincial debates on how to reduce emissions have overshadowed efforts to coordinate and invest in climate adaptation. Governments must work together to plan a path forward that better protects communities and families across the country, and to avert an insurability crisis as millions of new homes are built. This is a whole-of-society challenge and requires all leaders and stakeholders to come together to develop a national action plan to ensure Canada is better protected.”
Initial damage estimates are collected by Catastrophe Indices and Quantification Inc. under license to IBC.