CatIQ has lifted its industry loss estimate for the ice storm that swept across Ontario and Quebec in late March 2025 to C$490 million, reflecting a continued rise in costs six months after the event.
The figure, which includes residential and commercial property, motor claims and loss adjustment expenses, marks an increase from the C$416 million estimated at the three-month update.
The higher total is being driven largely by growth in Ontario personal lines, particularly among homes and seasonal properties in more remote locations. Many owners only became aware of the extent of damage during the summer months, when properties were more accessible. Insurers are also finding that claims costs are climbing faster than the volume of claims, suggesting severity is higher than initially expected.
The storm, which lasted from March 28 to 31, brought up to 35 hours of freezing rain in some areas and ice accretion of as much as 25 millimeters. The accumulated ice placed enormous strain on trees, power lines and infrastructure, causing widespread outages that left hundreds of thousands without electricity, some for weeks.
For insurers, the prolonged disruptions and costly repairs underscored the challenge of handling claims in events where access to affected properties is difficult. Delays caused by damaged infrastructure and long travel distances for contractors may have contributed to the escalation in costs. CatIQ estimated that about two-thirds of personal claims are now closed, but the final bill could climb further when the one-year update is released in March 2026.
Ice storms remain a recurring hazard for the Lower Great Lakes and St. Lawrence regions, where exposure to freezing rain events is high. The 1998 storm continues to stand as one of Canada’s costliest natural catastrophes, but more recent storms in 2018 and 2023 have also tested insurers’ capacity. The 2025 event reinforced the vulnerability of seasonal and secondary properties, which can complicate claims reporting and adjustment.
The upward revision in losses highlighted the importance of reserving prudently for secondary perils such as ice storms. It also signals ongoing implications for reinsurance programs, particularly given the clustering of severe weather events in recent years.
