The Insurance Bureau of Canada (IBC) has published initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ) which show that flooding in the Greater Toronto Area (GTA) on August 17 and 18 caused more than $100-million in insured damage. The event follows flash flooding in July which caused more than $940-million in insured damage.
“Ontario experienced over $1-billion in insured damage from floods this summer – the second costliest summer for flooding in the province’s history. This year’s losses were only surpassed by the Toronto floods in 2013,” they write.
In addition to flooding in Mississauga, Etobicoke and other parts of the GTA, a tornado also touched down in Ayr, Ontario at the same time, also causing damage.
Most destructive season in history
“The summer of 2024 now ranks as the most destructive season in Canadian history for insured losses due to severe weather. In only two months, July and August, this summer surpasses the worst year on record and pushed the 2024 year-to-date tally for insured damage to over $7.7-billion,” they state. Comparatively speaking, they add that insurers paid out only $701-million in claims annually between 2001 and 2010 for severe weather losses. “Insured losses in 2024 are now valued at over 10 times that number,” they add.
In its statement, the IBC also advocates for wetlands conservation investment and warns of an insurability crisis as municipalities continue to build new homes on flood plains and in areas prone to wildfire. “Other orders of government need to support resilient building so that insurance is available and affordable for homeowners in the future,” they state. “This includes urgent investments in disaster mitigation such as flood defenses, upgrades to stormwater infrastructure and programming to help fire-proof and flood-proof new and existing homes.”
