The Insurance Bureau of Canada (IBC) has called for a fundamental shift from disaster recovery to disaster prevention and resilience following the release of the Government of Canada’s "2026 National Adaptation Strategy Progress Report." Liam McGuinty, Vice-President of Federal Affairs at IBC, stated that Canada can no longer afford to treat extreme weather as a series of emergencies to respond to after the fact.

Infrastructure Deficit and Resilience

IBC emphasized that adaptation plans require significant investment to deliver results. The association identified a deficit of more than $65 billion in stormwater and wastewater infrastructure across all orders of government. Many of these systems are in poor condition, leaving communities increasingly vulnerable to flooding and sewer backups.

Recent events underscore this gap. This summer’s flooding in Manitoba, Ontario, and Quebec, alongside significant wildfire activity in British Columbia and Ontario, exposed weaknesses in aging systems. These events overwhelmed infrastructure, causing costly damage and disruption.

Rising Costs of Extreme Weather

Insured losses from extreme weather in Canada have escalated significantly over recent decades. The data reveals a sharp increase in financial exposure for households, businesses, governments, and communities.

Annual losses have increased by roughly 320% since the late 1990s and early 2000s, even after accounting for inflation. In 2024 alone, Canada experienced its costliest year on record, with insured losses from extreme weather exceeding $9 billion.

What the Numbers Show

The disparity between the last decade’s average annual losses (more than $3.7 billion) and the single-year peak in 2024 ($9 billion) indicates a widening volatility in climate-related costs. The 2024 figure represents more than double the average annual loss of the preceding ten years, suggesting that recent extreme weather events are not only frequent but also disproportionately severe compared to historical norms.

Industry Stance

IBC supports the National Adaptation Strategy as an important roadmap for building a more resilient Canada. The priority now is implementation. IBC looks forward to working with all orders of government and stakeholders to advance practical solutions that reduce disaster risk, strengthen resilience, and better protect Canada from the growing impacts of extreme weather. Investing in resilience protects Canadians, reduces disaster costs, and helps keep insurance affordable and available.

The Insurance Bureau of Canada (IBC) has launched its Virtual Community Assistance Mobile Pavilion (V-CAMP) helpline to provide real-time, one-to-one support for residents in British Columbia dealing with the aftermath of widespread wildfires. The initiative aims to assist affected individuals with insurance claims and recovery processes as evacuations continue and properties face destruction across the province.

As of Wednesday morning, the BC Wildfire Service reported five Wildfires of Note burning in British Columbia. Approximately 115 wildfires are currently active, with more than 50 considered out of control. Some homes have been reported damaged or destroyed, prompting IBC to coordinate closely with provincial and federal governments, emergency management officials, and municipal authorities in the affected communities.

Aaron Sutherland, Vice-President, Pacific and Western at IBC, stated that the organization is applauding first responders while urging those with property damage to contact their insurance representatives when ready to begin the claims process. Consumers with general insurance questions can reach IBC’s Consumer Information Centre at 1-844-2ask-IBC.

Key Insurance Guidance

IBC has outlined specific steps for policyholders to initiate their claims:

Standard homeowner and tenant insurance policies generally cover fire damage, even if the fire originated on a neighboring property, provided it was not started intentionally by the policyholder. These policies typically include coverage for additional living expenses (ALE) if a civil or provincial authority orders an evacuation. Policyholders are advised to keep receipts for costs such as hotel stays and to confirm the specific amount and duration of ALE coverage with their insurer.

Seasonal Residences and V-CAMP Support

Owners of seasonal or secondary residences, such as cottages or cabins, are urged to check their properties for damage when it is safe to do so and report any issues promptly. Coverage for these properties may differ from primary home insurance policies, requiring a review of specific policy wording and limits.

IBC’s V-CAMP is staffed with trained insurance industry personnel available via phone at 1-844-227-5422 or email at AskIBCWest@ibc.ca . The team addresses general questions regarding home, business, or vehicle insurance policies, including details on additional living expenses and the claims process. Affected residents can also access further information on IBC’s Wildfires & Insurance webpage.