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The floods in Quebec caused by the remnants of Hurricane Debby that hit the province in August now ranks as the costliest insured event in Quebec history.
Catastrophe Indices and Quantification Inc. announced Friday, according to initial estimates, the arrival of the aftermath of Hurricane Debby on Aug. 9 and 10 is estimated to have caused close to $2.5 billion in insured damage in Quebec. That’s a bigger cost than even the 1998 ice storm.
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“The record-breaking downpour caused by the remnants of Hurricane Debby has led to a surge in insurance claims related to flooded homes, businesses and vehicles,” said Johanne Lamanque, Quebec vice-president at the Insurance Bureau of Canada (IBC). “From the very beginning of this crisis, insurers deployed extraordinary measures to respond as quickly as possible to their clients’ need for financial support.”
Insurers are still assisting their customers as quickly as they can, but the volume of claims, combined with a shortage of skilled labour and continuing strains in Canada’s supply chain, means the claims process will take time.
The IBC recently reported Canada’s home, auto and business insurers are grappling with the most challenging summer on record for damage from severe weather events and natural disasters. The flooding in Toronto and other parts of southern Ontario, the Jasper wildfire, the Calgary hailstorm and flooding in regions of Quebec, have resulted in about 228,000 insurance claims. In 2023 for comparison, insurers reported 113,000 claims in July and August, and 160,000 claims for the whole year, and that was a year with record-breaking wildfires across Canada.
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“Insurers are paying out more in claims for the Quebec flood event than the federal government has invested on climate adaptation over the past decade,” said Craig Stewart, vice-president, Climate Change and Federal Issues, at the IBC. “Launching the promised National Flood Insurance Program is the single most-important step the federal government can take to better protect homeowners from the financial risks of climate change.
“Unless the federal government commits the necessary resources during the coming parliamentary session, with the backing of the provinces and territories, insurers will not be able to support the program before 2026. All orders of government must immediately stop building and rebuilding on flood plains and areas prone to wildfire, invest in disaster mitigation including upgrades to stormwater infrastructure, and roll out programs to help fire- and flood-proof homes.”
Insured losses related to severe weather in Canada now often exceed $2 billion annually. By comparison, between 2001 and 2010, Canadian insurers paid out an average of $701 million each year in claims related to extreme weather. Losses in 2024 are already much higher.
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