Destructive storm that hit Brooks, Alberta, caused over $235 million in insured damage

Three provinces impacted by August storm that swept across Western Canada

EDMONTON, AB, Dec. 8, 2025 /CNW/ - Severe storms that swept across three provinces on August 20 and 21, 2025, caused over $235 million in insured damage, according to estimates from Catastrophe Indices and Quantification Inc. (CatIQ). Alberta experienced the largest portion of losses stemming from this event, with damage to vehicles accounting for one-third of these costs.

The storms brought large hail, strong winds and torrential rain along a path beginning in southern Alberta and stretching across Saskatchewan and Manitoba. It was also confirmed that tornadoes touched down in both Alberta and Saskatchewan. The hardest hit communities included Brooks, Alberta; Radisson, Langham and North Battleford, Saskatchewan; and Portage la Prairie, Manitoba.

"Many people in the path of this devastating storm had their lives disrupted and property damaged," said Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC). "Insurers continue to help residents and businesses recover and rebuild from this storm, and ensure every claim is resolved."

Summer 2025 was an eventful weather season across Western Canada, with wildfires and hailstorms causing roughly $725 million in insured damage. This includes the July 13 Calgary hailstorm that resulted in $164 million in insured damage, and the La Ronge, Flin Flon, Lac du Bonnet and Shoe wildfires in Saskatchewan and Manitoba that resulted in roughly $360 million in insured losses.

"These severe weather events cause a significant emotional and financial toll on those affected," added Sutherland. "As the recovery and rebuilding process moves forward, residents should stay in close contact with their insurance representatives and adjusters as they progress through the claims process. Anyone with general auto, home or business insurance questions can also contact IBC's Consumer Information Centre at 1-844-2ASK-IBC or by email at [email protected]."

For years, insurers have been calling on all orders of government to better protect Canadians from natural disasters. In Western Canada, this must include efforts to:

• Mandate the use of hail-resistant roofing and siding for all new construction in high-risk areas.
• Create more stringent building code standards that account for the heightened risk of severe weather.
• Incentivize homeowners and businesses to make homes and businesses more resilient (e.g., governments should introduce resiliency rebates and retrofit programs).
• Improve hail notification services so that residents are better able to prepare and move vehicles out of harm's way when a storm is coming.
• Support communities in developing wildfire preparedness plans.
• Prioritize nature-based solutions for fire prevention, such as controlled burns, fire-smart forestry, and agricultural practices like green firebreaks and targeted grazing.

IBC has released a Three-Point Resilience Plan, a comprehensive strategy to protect vulnerable communities, ensure the continued sustainability of the home insurance market, and reduce the financial and emotional tolls of natural disasters.

Effects of severe weather on an already strained auto insurance market in Alberta

A significant portion of the claims from the August storm in Alberta were for damage to vehicles. As severe weather and other pressures on the insurance system increase, the cost of providing auto insurance continues to grow. Yet for the past three years, the Alberta government has frozen or capped auto insurance premiums below the cost of providing coverage – the longest period of government rate caps in auto insurance in Canadian history.

Auto insurance premiums in Alberta are now far below the cost of providing auto insurance coverage, with auto insurers paying out $1.20 in claims and expenses for every $1 they earned in premiums in 2024. This is not sustainable and has forced several insurers to stop providing auto insurance coverage in the province, leaving many drivers facing challenges securing the coverage they need.

With Alberta's Care-First reforms likely to improve the price of auto insurance for drivers, government has an opportunity to end its rate interventions and return the competitive market to health. Improving competition and choice for drivers will help the new model deliver even more savings for drivers, at a time when its needed most.

"Consumers are feeling the impact of an auto insurance system is crisis. After three years of government rate caps, competition is under strain and consumers are having challenges securing the coverage they need," added Sutherland. "The government must remove the rate cap and ensure the Care-First reforms are implemented effectively – especially by reining in out-of-control legal costs. By successfully navigating these final challenges, the provincial government can deliver a better, more affordable auto insurance system for Albertans in 2027. Alberta's insurers stand ready to help the government and Alberta drivers with this important transition."

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

Media Contact: Brett Weltman, Manager, Media Relations, IBC, [email protected]