Rising North American insurance premiums

Insurance premiums in Canada and the United States are rising significantly, driven by increasing environmental risks and shifts in corporate profit models.

In Canada, extreme weather events such as wildfires and flooding have led to substantial insured losses. In Saskatchewan and Manitoba, approximately 30 catastrophic weather events since 2021 resulted in roughly $2.5 billion in losses, representing a 140 percent increase compared to the previous five-year period. The Insurance Bureau of Canada reported that the 2025 wildfire season caused over $8 billion in insured damage nationwide. Consequently, Canadian insurance costs have roughly doubled over the last decade, often outpacing inflation. Experts suggest that traditional insurance models relying on historical data are becoming less effective due to climate change and aging infrastructure.

In the United States, while worsening disaster risks contribute to higher costs, investigations suggest that insurers are also retaining a larger share of customer premiums. This allows companies to protect profit margins even as coverage becomes less affordable for households.