Yesterday's storm across the GTA left thousands of Ontarians filing claims for water, wind and hail damage, and insurers say the event fits a pattern of increasingly frequent and costly severe weather that's already reshaping how the industry prices and prepares for catastrophic loss.
The storm brought widespread flooding, large hail and destructive winds across Toronto and the wider region, submerging vehicles and knocking out power to tens of thousands of homes. Aviva Canada said it has already seen claims coming through for water, wind and hail damage, spanning both property and auto, and is actively supporting affected customers.
"Convective storms have long been a risk in Canada, but we're now seeing more severe events and higher claims activity," said Shauna Mamini, AVP of property portfolio and exposure management, personal insurance, at Aviva Canada. Impacts vary by region, she said, with wind and tornado damage more common in Ontario and large hail a bigger concern across the Prairie provinces.
The numbers behind that shift are stark. Convective storms have driven nearly 80% of Aviva's catastrophe claims so far this year, Mamini said. Compared with 2020 to 2022, the insurer has recorded a 48% increase in average catastrophe water claim severity, a doubling of water-related catastrophe events from five to 10 per year, and a 214% increase in water-related catastrophe claims filed annually.
"Increasingly, these storms are triggering major urban flooding, like what we saw yesterday," Mamini said. "Repeated storms and saturated ground leave communities more vulnerable to flooding, even in cities with green space for water mitigation." High-intensity rainfall is overwhelming stormwater infrastructure in many parts of the country, she said, underscoring the need for upgrades built for today's weather extremes.
Kelly Stevens, chief operating officer at Crawford & Company (Canada), said storms of this scale typically generate claims across multiple lines of business. Most activity is expected in residential and commercial property, including wind, water intrusion, roof damage, fallen trees and power-related losses, alongside a rise in auto claims tied to flooding, hail, fallen debris and weather-related collisions. Business interruption and supply chain losses are also likely among commercial policyholders, though those claims typically take longer to assess.
"Toronto is obviously a high-density area and the largest city in Canada, so our immediate focus is helping insurers and policyholders respond quickly, ensuring claims are triaged, inspected and settled as efficiently as possible so people can begin the recovery process," Stevens said.
Lee Powell, vice president and executive general adjuster in Canada at Sedgwick, said the storm has generated significant claims volume across both personal and commercial lines, including major event venues. "We are seeing significant volume of claims on both the personal lines and also significant commercial claims, such as major event centres," Powell said. "There is both physical damage to the homes and commercial buildings/stadiums, and it will result in significant impacts to planned events/concerts and business." Some areas remained without power nearly 24 hours after the storm, he said.
The pattern extends beyond this single event, Powell said. "This summer has definitely presented multiple severe weather events across Ontario," he said, pointing to repeated significant rain events resulting in flooding, as well as wildfires in Northern Ontario that caused physical damage.
For drivers assessing vehicle damage, coverage depends on the type of policy in place, according to Matt Hands, VP of insurance at Ratehub.ca. "Comprehensive coverage generally protects against non-collision damage such as hail and flooding," Hands said. "Drivers should review their policy to understand what's covered and what deductible would apply."
Flood damage introduces a wrinkle drivers may not expect, Hands said. "If your vehicle is damaged by flooding, comprehensive coverage will generally provide protection for flood-related damage. However, if you were driving when you encountered floodwater, the claim could potentially be interpreted as a collision depending on the circumstances and your insurer's interpretation." Carrying both comprehensive and collision coverage, he said, offers more complete protection against that ambiguity. Drivers should document any damage with photos and contact their insurer before arranging repairs, he added.
The financial toll of these events is also mounting industry-wide. Hands pointed to Insurance Bureau of Canada data showing insured losses from flood and water-related events have increased more than 350% over the past two decades. "As insurers face higher costs to repair or replace damaged vehicles, those increased claims costs can ultimately put pressure on insurance premiums," he said.
Individual premiums still depend on a range of factors, including location, driving and claims history, and the vehicle being insured, Hands said, but the broader trend is unlikely to reverse. "As severe weather continues to generate more claims, consumers should expect the cost of insuring vehicles exposed to these risks to remain an important consideration."
Stevens echoed that the industry's response is shifting accordingly. "We see the industry investing more heavily in risk mitigation, catastrophe preparedness, predictive analytics and customer education," he said. "The industry is increasingly focused on helping policyholders prevent losses before they occur, rather than simply responding after an event. This is a step in the right direction."
