Across Canada, insurable losses in some provinces and the country’s average as a whole, have increased more than 300 per cent in the past 10 years when figures are compared to the prior 30-year average data from Public Safety Canada’s Canadian Disaster Database.
The new analysis from Insurtech company MyChoice, used data from the database, comparing the 10-year average of disaster-related annual insurable losses against the prior 30-year average, adjusted for inflation. The analysis found the highest increases in Alberta and Saskatchewan, which experienced increases of 495 per cent and 302 per cent respectively during the study period. Canada’s overall average annual insurable damages increased 379 per cent.
The company estimates that climate-related disasters have cost the average Canadian $409 each year in increased home insurance premiums over the last 10 years as home insurance premiums increased 76 per cent across Canada in the last decade. In Alberta and Saskatchewan, the increases were 90 per cent and 106 per cent, respectively.
“As these events become more frequent and destructive, insurers are left with no choice but to raise premiums to keep pace with the growing risk, or in some cases, to consider ceasing operations in certain areas,” they warn. The report cites several examples out of the United States, but also points to Aviva Canada’s recent departure from Alberta. “The company is planning to phase out Aviva Direct, its direct-to-consumer home and auto business, from Alberta in early January 2025.”
