Insights into the impact of extreme weather trends in Canada on homeowners insurance profitability and consumers

Description: This paper looks at how extreme weather claims have impacted the insurance industry in Canada from 2020 to 2023. A specific focus is given to homeowners insurance, which during this time, homeowners insurance consumer price index exceeded all items inflation. Insurer profitability and consumer impacts are analyzed given the significant uptick in catastrophic claims. All four years analyzed ranked in the top 10 most costly claims years in Canadian history, costing billions each year. In addition, other contributing factors are explored to provide a robust overview of trends in profitability of the insurance industry.

Issue Number: 2024003

Frequency: Occasional