January's winter blast could hit insurance rates

Insurance rates my take another hit after some nasty winter weather.

The Insurance Bureau of Canada reports the damage caused by the extreme cold in January in Alberta, B.C. and Saskatchewan cost over $180 million.

About 70 per cent of that was for personal property and damage caused by frozen and burst pipes.

Much of Western Canada started the new year with unseasonably mild temperatures, however, on January 12, daytime highs dipped sharply to well below the seasonable normal and stayed there for several days. 

Environment Canada reported dozens of new daily minimum temperature records were set. 

"As the frequency and severity of weather events continue to increase in Western Canada, so too do the financial costs borne by insurers and taxpayers. We all must do better to protect ourselves from loss or damage resulting from natural disasters, which continue to have an outsized impact on the most vulnerable," said Rob de Pruis, National Director, Consumer and Industry Relations, IBC.

IBC reported earlier this year, severe weather in 2023 caused over $3.1 billion in insured damage across Canada.