According to experts, the rising risk of severe weather events is one of many factors applying pressure to insurance companies, which could potentially result in increased premiums for consumers.

Craig Stewart is with the Insurance Bureau of Canada.

He says that in recent years, a combination of extreme weather losses, inflation, and reinsurance costs have all contributed to driving insurance premiums higher.

The IBC reports that severe weather caused over $3.1 billion in insured damage in 2023, which is the fourth-worst year on record.

Stewart notes that while wildfires accounted for a considerable chunk of those losses, flooding also caused significant damage across the country, as did severe hail and wind storms.

According to the IBC, the Okanagan and Shuswap-area wildfires alone cost $720 million in insured damage.

Meantime, severe summer storms in Ontario and spring ice storms in Ontario and Quebec cost a combined $670 million.