Consumers have had to pay more for home, mortgage and car insurance in the past six years, driven in part by increases in extreme weather events, according to a new Statistics Canada analysis.
Other factors include higher vehicle costs, pricier repairs and the rise in thefts.
“These factors have contributed to higher insurance expenses, and insurers have raised premiums to compensate,” StatCan stated in a press release about its report published Tuesday.
The study noted that the country’s property and casualty insurers are grappling with increasing financial pressure. StatCan looked at the impact of the rising costs of extreme weather claims on the sector and consumers between December 2019 and December 2025.
During that time frame, home and mortgage insurance premiums rose 45 per cent, which the study found is more than double the 21-per-cent increase in the all-item Consumer Price Index in the same period.
Meanwhile, passenger vehicle insurance premiums outpaced overall inflation, growing 23.9 per cent, according to StatCan.
“Automobile insurance has been less directly affected by extreme weather than homeowners’ insurance, but expenses and premiums have also risen,” according to StatCan. “Higher vehicle prices and higher costs for parts, maintenance and repairs were contributing factors.”
The study also found that theft claims passed $1.5 billion nationwide when the incidents peaked in 2023.
Uninsured costs from extreme weather
StatCan found that uninsured costs from extreme weather have been growing. For every dollar of insured losses, the agency estimated that between $2 to $4 of uninsured costs are incurred, citing multiple studies. These costs include damage to public infrastructure and household expenses from property taxes.
The federal government’s Disaster Financial Assistance Arrangements program has also seen rising costs. The program supports provinces, territories and municipalities in recovering public infrastructure expenses. Among the jurisdictions, the Prairie provinces have historically received the biggest amount, mainly because of flooding.
What is the main source of insured losses?
Flooding is the primary source of insured losses, according to StatCan. Around $9 billion was distributed over the past decade, with almost half coming from 2024 alone.
“These pressures are compounded by aging infrastructure, particularly water and sewer infrastructure, which is straining municipal budgets and contributing to higher property taxes,” StatCan stated in the press release.
Which province had the highest premium hikes?
Alberta saw the biggest cumulative increase in homeowners’ insurance premiums among all provinces. The figure climbed 391.6 per cent over a 20-year period between December 2005 and December 2025.
For the recent five-year period, Alberta (55.8 per cent), Manitoba (46.7 per cent), Nova Scotia (43.1 per cent) and Saskatchewan (40.9 per cent) all exceeded the national rate of 38.6 per cent, according to StatCan.
“Alberta’s disproportionate exposure in part reflects its elevated risk of hailstorms, wildfires and convective storms, particularly in and around the Calgary region,” according to the press release.
Catastrophic claims record
StatCan also found that catastrophic claims in Canada hit a new record in 2024, reaching $8.6 billion that year. The figure eclipsed the record set in 2016 of $6.2 billion. Extreme weather, worsened by climate change, drove the spike in these claims, according to the study.
The study noted the following four major catastrophic events happened in the third quarter of 2024: the Calgary hailstorm ($3 billion), the Jasper wildfire ($1.1 billion), Quebec flooding ($2.7 billion) and Ontario flooding ($990 million).
Since the tracking of data began in 1983, each year from 2020 to 2025 ranked among the “top 10 costliest years” for extreme weather claims, according StatCan.
