Severe storms that swept across Alberta, Saskatchewan and Manitoba on Aug. 20 to 21, caused an estimated $235 million in insured damage, with Alberta accounting for the largest share.
Vehicles represented roughly one-third of the losses, according to Catastrophe Indices and Quantification Inc. (CatIQ). The storms included large hail, strong winds, torrential rain, and confirmed tornadoes in Alberta and Saskatchewan, affecting communities such as Brooks, Alberta; Radisson, Langham, and North Battleford, Saskatchewan; and Portage la Prairie, Manitoba.
Aaron Sutherland, vice-president of Pacific and Western at Insurance Bureau of Canada (IBC), noted the significant disruption to residents' lives and property. Insurers continue to assist Canadians with claims and rebuilding, emphasizing the importance of staying in contact with insurance representatives to ensure proper support and coverage throughout the recovery process.
The IBC also encouraged homeowners and businesses to review their policies to ensure protection against severe weather events, including auto, home, and business insurance coverage.
The summer of 2025 has been particularly costly for insurers, with wildfires and hailstorms in Western Canada totaling roughly $725 million in insured damage. This includes the July 13 Calgary hailstorm ($164 million) and wildfires in Saskatchewan and Manitoba ($360 million). These recurring extreme weather events are placing increasing strain on the property and casualty insurance sector, particularly in Alberta’s auto insurance market.
Meanwhile, a large portion of Alberta's insured losses involved vehicle damage, compounding pressures on an already stressed system. For the past three years, government-mandated premium caps have kept auto insurance rates below the cost of providing coverage.
In 2024, insurers in Alberta paid out $1.20 in claims and expenses for every $1 earned in premiums, prompting some providers to exit the market, limiting consumer options.
The IBC highlighted that Alberta’s planned Care-First reforms could help restore market balance by improving pricing for drivers and increasing competition, provided government rate interventions are lifted and legal costs are controlled.
Sutherland stressed that insurers are ready to support the government and drivers to ensure the transition delivers a more sustainable, affordable system by 2027.
"Alberta's insurers stand ready to help the government and Alberta drivers with this important transition," he said.
The recent storms underline the growing financial and operational pressures on Canada’s insurance industry, reinforcing the need for resiliency measures, stronger building codes, and proactive risk management to protect policyholders and maintain the viability of private auto and property insurance markets.
