Insurance Bureau of Canada flags 2024 turning point

The Insurance Bureau of Canada’s 2026 InSight Summit put a hard date on a change many carriers were already feeling: 2024. Speakers at the Toronto event described that year’s catastrophe losses as the point when climate risk stopped sitting mainly in long-range models and started dictating day-to-day insurance decisions. Canadian industry data helps explain why. Insurance Bureau of Canada says severe-weather insured losses in 2024 exceeded C$8.5 billion, the first time they passed C$8 billion in Canadian history, while its climate page says total insured losses for the year topped C$9.2 billion. (ibc.ca) That backdrop is changing how insurers talk about underwriting, claims and public policy. At the summit, Aon’s Daniel Raizman told attendees clients are asking less about distant end-of-century scenarios and more about present risk — “What’s my flood risk today? (ibc.ca) What’s it look like tomorrow?” — as carriers try to price and manage hazards that are already hitting balance sheets. ### Why did 2024 become the year people keep pointing to? Insurance Bureau of Canada said on January 13, 2025 that 2024 was the costliest year for severe weather-related insured losses in Canadian history at C$8.5 billion. The group said that total was nearly triple 2023 losses and well above the previous record of C$6 billion in 2016. (ibc.ca) IBC’s climate materials add more detail. Four catastrophic events in five weeks during the summer of 2024 accounted for more than C$8 billion in insured losses, and total insured losses for the year surpassed C$9.2 billion, according to CatIQ estimates cited by IBC. ### What does “move from models to operations” actually look like? (canadianunderwriter.ca) Daniel Raizman, Aon’s global head of client engagement for Climate Risk Advisory, told the summit that most insurance questions now focus on the next five years, not 2050. He said the industry depends on climate and forecasting data for day-to-day risk transactions across insurance and reinsurance. In practice, that points to tighter risk selection in underwriting, faster event triage in claims and more explicit resilience planning around protection gaps. (ibc.ca) Canadian Underwriter’s summit coverage said panellists were focused on “real-world climate risks,” while Raizman said carriers and brokers are framing climate data in business terms because it is used every day in catastrophe risk management. (ibc.ca) ### Why are insurers talking about protection gaps and public policy again? Ravi Mahabir, vice president of climate at Intact Financial Corporation, told the summit there is work underway with the federal government on a public-private partnership to help address Canada’s protection gap. He said similar structures exist in France and the United Kingdom. (canadianunderwriter.ca) The federal government set that process in motion in Budget 2024. IBC said Ottawa’s plan would support Canada’s first national flood insurance program for households at high risk of flooding, with the industry expecting about 1.5 million homeowners to gain access to affordable coverage when the program launches. (canadianunderwriter.ca) ### Why is the finance conversation shifting toward resilience? Channel News Asia reported on May 20 that bank executives at Singapore’s Ecosperity Week 2026 said climate finance in Asia is moving beyond emissions-cutting projects toward resilience and energy security. DBS Chief Sustainability Officer Kelvin Wong said governments and banks would be remiss not to think about adaptation and resilience as heat, floods and other disasters create financing risks. (canadianunderwriter.ca) Forbes made a similar argument on May 20, saying the G7 should treat disappearing insurance capacity as an economic risk, not only a sector problem. That lines up with IBC’s own position that climate adaptation, flood protection and resilience investments are needed alongside emissions policy. (ibc.ca) ### What should readers watch next? Insurance Bureau of Canada says its climate agenda still includes the national flood insurance program, adaptation investments, improved building codes and land-use planning. The group’s severe weather centre says 2025 still ranked among Canada’s 10 costliest years for severe weather, even after losses fell to C$2.4 billion from 2024’s record level. (ibc.ca) (forbes.com) (channelnewsasia.com)