At this year's National Insurance Conference of Canada (NICC), Insurance Bureau of Canada (IBC) president and CEO Celyeste Power urged stronger collaboration between governments and the insurance industry to protect Canadians from the growing human and economic toll of severe weather.
Power noted that the signs of worsening climate risk are already clear, with record-breaking wildfires, flooding and windstorms causing billions in insured losses, displacing families and testing the limits of Canada's disaster response. She added that the question now is not whether the government should act, but when it will do so collaboratively to better protect communities.
In response, Power unveiled IBC's new three-point resilience plan, which outlines a framework for governments and the insurance sector to strengthen community protection and market stability. The plan focuses on investing in resilient infrastructure, establishing a national flood insurance program for high-risk areas, and improving data sharing and risk assessment capabilities across all levels of government and industry.
IBC said that without decisive action, escalating weather losses could threaten the affordability and availability of insurance in several regions across Canada. Industry data showed that severe weather has cost Canadian insurers an average of $2 billion annually in recent years, four times higher than two decades ago. These mounting losses are straining reinsurance capacity and driving up premiums, particularly in flood- and wildfire-prone areas.
Power emphasized that resilience is not solely a government responsibility but a shared one involving insurers, communities and policymakers. She said that proactive investment in risk prevention, such as flood defences, updated building codes and natural infrastructure, can reduce recovery costs, limit damage and help maintain affordable coverage for homeowners.
The initiative aligns with IBC’s new report, State of the Home Insurance Market: Healthy but Pressure is Building, which highlighted that while the industry remains financially stable, climate-related losses are eroding long-term sustainability.
The report also cautioned that without greater investment in adaptation measures, insurers may have to further tighten underwriting standards or retreat from high-risk regions, leaving homeowners with limited protection options.
Power concluded that addressing Canada’s growing exposure to extreme weather will require a coordinated national approach that combines policy reform, climate adaptation, and insurance innovation.
