As home insurance premiums continue to climb across Ontario, an advocacy group is calling on the province’s financial regulator to increase transparency around how rates are set and risks are assessed.
Investors for Paris Compliance has submitted a proposal to the Financial Services Regulatory Authority of Ontario (FSRA), urging it to require insurers to publicly disclose home insurance rate changes and share the data used to evaluate climate-related risk. The group says rising premiums, combined with narrowing coverage, are raising concerns about affordability and access.
“There’s been open-ended rate hikes, while at the same time there’s been shrinking coverage due to the escalating costs of climate change,” said Kiera Taylor, senior policy analyst at Investors for Paris Compliance, speaking to CBC.
The Insurance Bureau of Canada (IBC) reported more than $9 billion in insured losses from severe weather events in 2024, nearly three times the previous year’s total and well above historical averages. According to the IBC, such losses are contributing to the upward pressure on premiums.
“Year over year, severe weather losses are rising at an alarming, exponential rate,” said IBC spokesperson Brett Weltman.
Industry observers point to events like flooding, wildfires, and wind damage as key drivers of recent claims. In major urban areas such as Toronto, severe rainfall events have led to a surge in water-related damage claims.
According to Rates.ca, home insurance premiums in Ontario rose 84% between 2014 and 2024. Nationally, premiums increased 76%, outpacing inflation by a wide margin. In the first quarter of 2025, Rates.ca reported a further 5% increase in Ontario home insurance rates.
FSRA said in a statement that its mandate includes licensing insurance agents and setting standards for market conduct but does not extend to setting or approving home insurance rates. Unlike auto insurance, home insurance is not compulsory in Ontario and it’s not subject to direct rate regulation, the report said.
Despite this, Taylor said FSRA could still play a role in improving accountability by requiring insurers to publish rate changes and by making insurer risk data publicly available. Currently, consumers rely on limited or outdated public flood mapping, while insurers use more detailed data to price risk.
In June 2024, FSRA published a review of claims practices among Ontario’s largest home insurers. The report found issues such as inconsistent communication with policyholders and a lack of detailed tracking for denied claims. FSRA said it addressed these findings with insurers directly.
Weltman said access to clear and timely risk information is becoming increasingly important for homeowners. The IBC is working with FSRA on options to share such data and is also partnering with the federal government on a national flood risk portal.
IBC and others in the insurance sector have called for more coordinated efforts across levels of government to improve climate resilience, including support for infrastructure, zoning decisions, and building practices that could help mitigate losses and stabilize the insurance market.
Weltman added that policyholders who have filed claims related to weather events should speak with their insurer to discuss property protection strategies that may reduce future risks and premiums, the report said.
In a written statement, a spokesperson for Ontario’s Ministry of Finance said the province is monitoring the issue in partnership with FSRA and continues to engage with insurers.
“We are also in regular contact with the insurance industry to discuss options to support homeowner insurance,” said Scott Blodgett.
