In the span of just five weeks this past summer, Canada saw five natural disasters: three major floods in Ontario and Quebec, the Jasper wildfire and a record-breaking hailstorm in Calgary.

These events resulted in more than a quarter of a million insurance claims – 50% more than Canadian insurers typically receive in an entire year. The impact felt following these events also brought home a greater understanding of the fact we live in a time characterized by an ever-increasing risk of natural disasters and an ever-rising threat to lives and property.

It’s not an anomaly. It’s not bad luck. It’s our new normal.

As we reflect on the occurrences of this past year, there are two key takeaways the insurance industry can carry as we head into 2025:

First, both the strength and resilience of Canada’s insurance industry are on display as we respond to these challenging events. We are on the ground and paying out claims. We are withstanding these losses. And we are doubling down on our efforts to deliver a positive claims experience to our customers – even when faced with delays in the supply chain and shortages in skilled labour.
Second, we are stepping up advocacy to government, on behalf not only of our industry but also our country and its people. It’s long past time for Canada to invest in climate-related defences and fully fund the National Flood Insurance Program to better protect both homeowners and taxpayers.

We can all see what’s happening in certain U.S. states – the growing challenges relating to the affordability and availability of property insurance. Government and industry here in Canada need to work together in 2025 to ensure we are not afflicted by the same problems. The best way to accomplish this is to make meaningful investments in resiliency, and to ensure consumers understand the link between climate change and their insurance premiums.

Meanwhile, on the commercial front, we anticipate 2025 will deliver a receptive market for our customers. After a lengthy period of challenges, we are seeing the trendline move toward improved availability and affordability in commercial lines. Capacity has returned, with more insurers actively competing for market share. This is a win for consumers, as it gives them more choice and more opportunity to shop around.

As an industry, it’s important to remain vigilant – and equally important to continue our efforts to inform and educate consumers, including property owners and the owners of small- and medium-sized businesses, about the importance of risk management.