Canada's rising insurance payouts for extreme weather are unsustainable

Insured losses from floods and wildfires in Canada have grown from about $300 million a year three decades ago to roughly $3 billion on average today, with 2024 reaching $9.4 billion. A 2025 review found the federal National Adaptation Strategy lacks key systems for prioritizing risk and tracking performance.

Canada is experiencing sharply higher insured losses from extreme weather, driven largely by flooding and wildfire. Adjusted for inflation and national wealth, annual insured losses rose from about $300 million thirty years ago to roughly $3 billion on average today, with 2024 reaching $9.4 billion. The federal National Adaptation Strategy, launched in 2023, aimed to improve preparedness for housing, but progress has been described as slow. A 2025 review by the Commissioner of the Environment found gaps in risk prioritization, economic guidance for investment, federal action planning, and performance monitoring. Key facts: - Insured losses from flooding and wildfire have risen markedly over recent decades, with 2024 recorded at $9.4 billion. - The 2025 Commissioner review reported that the National Adaptation Strategy lacks systems to prioritize climate risks, an economic framework to guide investments, and meaningful performance monitoring. - Federal programs that aim to support construction of about 3.9 million new homes by 2031 have raised concerns about future exposure if adaptation is not integrated, and the Intact Centre plans to release related data in 2026. Summary: Rising insured losses increase financial strain on households and communities and indicate that adaptation efforts are not yet keeping pace with climate risk. Near-term developments include the Intact Centre's planned 2026 data release and the federal goal to support roughly 3.9 million new homes by 2031, which together will influence how adaptation priorities and costs are addressed.