Fires, floods and storms: $3.7 billion in insured damage makes summer 2026 third worst on record

Summer's insured losses underscore the growing financial impact of severe weather across Canada

TORONTO, Oct. 22, 2026 /CNW/ -- Severe weather caused more than $3.7 billion in insured losses this summer, according to estimates from Catastrophe Indices and Quantification Inc. (CatIQ). This makes the summer of 2026 the third-costliest summer in Canadian history for losses related to severe weather. Four of the five costliest summers in Canadian history have occurred within the last six years.

Noteworthy severe weather events this summer include June storms in the provinces of Manitoba and Saskatchewan and the city of Montreal, July and August flooding in Ontario's Niagara Region, late-June and early-July storms across Ontario and Quebec, intense wildfires across British Columbia, and multiple flooding, wind and hail events across the Prairies. 

    Costliest severe weather events in summer 2026 

June storms in Manitoba, Saskatchewan and Montreal	$1.1 billion
Early summer storms in Ontario and Quebec	$439 million
July and August flooding in Niagara Region	$360 million
Severe storms across the Prairies	$1.8 billion
British Columbia wildfires	$550 million

"This summer's extreme weather once again highlights the significant impact that severe weather events are having on Canadian communities," said Celyeste Power, President and CEO, Insurance Bureau of Canada (IBC). "These events are part of a long-term pattern of increasingly severe and costly disasters across the country. IBC continues to advocate for a whole-of-society approach to protect Canadians from the ongoing impacts of fires, floods and other catastrophic weather events. "

Top 5 costliest summers on record for extreme weather in Canada

Ranking	Year	Total Insured Loss ($CAD 2025)
1	2024	$8.8 billion
2	2013	$3.9 billion
3	2026	$3.7 billion
4	2023	$2.8 billion
5	2020	$1.7 billion

Rising costs of extreme weather in Canada

Over the last decade, insured losses from extreme weather in Canada have averaged more than $3.7 billion annually, up from $1.4 billion in the previous decade and $883 million in the decade before that. Annual losses have increased by roughly 300% since the late 1990s and early 2000s, even after accounting for inflation. In 2024, Canada experienced its costliest year on record, with insured losses from extreme weather exceeding $9 billion. These escalating costs are being borne by households, businesses, governments and communities across the country.

"The insurance industry will continue to be there for Canadians following these devastating events. However, we cannot solve this issue on our own," added Power. "We look forward to working with governments across the country to take meaningful action to stop putting people in harm's way, reduce the risk currently facing Canadian homes and businesses and invest in weather-resilient infrastructure to protect communities."

Protecting Canadians from severe weather risks

IBC is reiterating its call for all orders of government to take immediate steps to reduce Canada's exposure to extreme weather events, including:

• A commitment to build new homes away from high-risk flood and wildfire zones by strengthening land use planning and restricting development in areas that are at highest risk
• Providing incentives for homeowners to invest in practical, affordable measures that reduce extreme weather damage and recovery costs
• Requiring cost-effective, community-level mitigation measures – such as flood-protection infrastructure and FireSmart measures to help reduce the risk of wildfire damage – when building in high-risk areas is unavoidable
• Investing in resilient infrastructure to protect communities from extreme weather risks, such as flooding
• Strengthening building codes and construction standards to ensure new homes are built with resilient features that reflect current and future climate conditions
• Empowering homeowners, renters and businesses by providing clear, accessible information so they can make informed decisions and take practical steps to mitigate their risks.

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]