Home insurance pricing in Canada is evolving rapidly in response to climate change and rising claims costs. As a professional insurance broker, I’ve watched companies roll out new strategies to stay profitable while offering fair coverage to homeowners. In this article, we’ll compare how Intact Financial Corporation – Canada’s largest home insurer – is changing its pricing approach versus other major insurers. We’ll spotlight Intact’s use of layered risk mapping for perils like flood, wildfire, and hail, as highlighted by CFO Ken Anderson at the Canadian Financial Services Conference. We’ll also look at what other insurers are doing with data, climate modeling, and AI, and discuss how these changes affect homeowners across Canada. Finally, we’ll focus on British Columbia’s unique risks and conclude with practical advice for homeowners on keeping insurance costs manageable.

Intact’s New “Peril-by-Peril” Pricing Approach

Intact Financial Corporation is leading the charge in pricing sophistication. Ken Anderson, Intact’s CFO, recently explained that Intact now prices its home insurance “peril-by-peril” – meaning each type of risk (peril) is evaluated separately​. “We’re now using maps by peril — be it flooding maps, wildfire maps, hail maps — and overlaying those on top of each other as we do our pricing,” Anderson said at the National Bank Financial Canadian Financial Services Conference​. In practice, this means Intact looks at detailed geographic risk maps for each hazard and layers them to determine a property’s premium. A home sitting in a floodplain, near a wildfire-prone forest, and under a frequent hailstorm corridor will be priced very differently than one with none of those risk factors.

This granular mapping approach is part of Intact’s effort to maintain profitability amid surging climate-related claims. Intact is investing in advanced actuarial science and machine learning to fine-tune its pricing models as well​. By leveraging AI and large datasets, Intact can better predict losses and set rates that reflect each home’s true risk profile. The goal is to stay a step ahead of Mother Nature’s volatility and charge premiums that match the exposure, thereby keeping their combined ratio (losses relative to premiums) in check.

Intact has also made policy-level tweaks to manage specific perils and claim costs. For example, they introduced “basement limits on basement losses” – essentially capping coverage for damages in basements – and adjusted roof hail coverage so that payouts on roof claims are based on the roof’s depreciated value rather than full replacement cost​. In hail-prone regions, older roofs now receive actual cash value settlements, encouraging homeowners to replace aging roofs and reducing the insurer’s cost on hail claims. These changes align prices more closely with risk and encourage loss prevention.

Importantly, Intact isn’t just changing pricing – it’s also investing in loss prevention services to mitigate claims. Anderson cited Intact’s partnership with Wildfire Defense Systems (WDS), an American wildfire risk management company. WDS crews deploy to at-risk areas in Alberta and British Columbia to protect homes when wildfires threaten, for example by spraying fire retardant or removing ignition sources. This proactive approach “lowers the risk of embers causing fires and full losses,” potentially preventing total home losses in wildfire zones​. Intact has already seen cases where WDS likely prevented a total loss in a wildfire situation​.

Along with big initiatives, Intact is encouraging everyday mitigation. They even acquired a home maintenance tech platform (Jiffy) to help policyholders keep their homes in good shape​. The idea is that if customers perform regular maintenance (like cleaning eavestroughs or fixing small leaks), losses from preventable incidents will drop. Intact’s strategy blends high-tech risk mapping, adjusted coverage terms, and on-the-ground prevention to handle the new normal of extreme weather. It’s a sophisticated approach that other insurers are watching closely.

How Other Insurers Are Adapting Pricing with Data and AI

Intact may be a frontrunner, but it’s not alone in revamping pricing models. Across Canada, major home insurers are turning to data-driven strategies, climate risk modeling, and AI to manage rising claims costs and remain profitable. The entire industry is reacting to the same pressure: in 2024, insured losses from severe weather hit a record $8.5 billion in Canada, the highest ever​. After back-to-back floods, wildfires, windstorms and hailstorms, insurers are facing higher claim payouts than ever before. To avoid simply raising premiums across the board (which can drive customers away or invite regulatory scrutiny), insurers are getting smarter about how they price risk.

Many large insurers now use sophisticated catastrophe models and hazard mapping tools similar to Intact’s approach. For instance, Co-operators, a major Canadian insurer, has an in-house team (nicknamed “CHARM”) devoted to climate hazard modeling. “Through our CHARM team, we are developing and using sophisticated risk models to understand our exposure to climate-related risks from natural hazards like floods and wildfires,” Co-operators reports​. They continuously update flood models (rivers, coastal storm surges) and are developing wildfire simulation tools to predict fire spread​. These models inform how they design and price their insurance products. The practical upshot is that Co-operators, like Intact, prices policies with an eye on each location’s specific flood or fire risk. Notably, Co-operators has taken a bold step by offering a Comprehensive Water endorsement that covers overland flood even for high-risk homes, using risk-based pricing to make it sustainable​. That sends a price signal – if you’re in a floodplain, you’ll pay more – which ideally incentivizes homeowners and municipalities to reduce flood risk.

Other big players are leveraging artificial intelligence to refine underwriting and claims, which ultimately feeds back into pricing strategy. Desjardins Insurance, for example, has expanded AI-driven claims processing with natural language processing and computer vision tools​. Faster, smarter claims handling can reduce leakage (unnecessary claim costs) and detect fraud, helping control the overall cost of claims. Aviva Canada recently launched an AI-powered fraud detection system to analyze claim patterns, catching suspicious claims earlier​. By combating fraud and improving efficiency, insurers can save money – savings that help offset the upward pressure on premiums. AI is also being tested in underwriting; machine learning algorithms can analyze vast datasets (from weather patterns to building characteristics) to segment risk more finely than traditional actuarial tables. For example, an AI model might flag that homes with certain roof types in a specific micro-climate have 20% higher expected loss, prompting an insurer to charge those homes a higher rate or recommend a mitigation measure.

All insurers are also repricing to reflect climate risk more accurately. In practice, this means significant premium increases in high-risk regions and for risk-exposed homes. We’ve seen insurers implement wildfire surcharges or separate wind/hail deductibles in Western Canada, and higher base rates for water damage coverage in flood-prone zones. According to a recent industry report, home insurance premiums have been rising fastest in catastrophe-prone provinces – Alberta saw rates jump ~9% in 2025 alone, after experiencing $4.1 billion in weather-related damage in 2024​. Nova Scotia also faced steep increases following a bad wildfire and hurricane season​. Insurers are increasingly unafraid to charge premiums truly reflective of risk, even if that means some homeowners face big hikes. In extreme cases, insurers have even restricted new policies in very high-risk areas (for example, some companies temporarily stopped writing new home insurance in parts of wildfire-ravaged California​ – a cautionary tale that Canada is watching​).

That said, it’s not all about charging more; insurers are trying to reward mitigation and resilience. Some companies offer differentiated pricing or discounts if a homeowner has taken protective measures. For instance, an insurer might give a break on premiums for installing a professional monitored smoke alarm or a wildfire-resistant roof. In fact, industry data shows insurers are exploring incentives such as lower premiums for homes with climate-resilient upgrades (e.g. fire-resistant building materials or elevating the home in flood zones)​. This trend of risk-based pricing benefits homeowners who proactively reduce their risk, while those who don’t will pay a risk-adjusted rate. From my perspective as a broker, this approach is fair – it essentially says “you have some control over your risk, and your insurance costs will reflect the precautions you take.”

Impact on Homeowners Across Canada

For homeowners, these changes in pricing strategy bring a mix of challenges and opportunities. The immediate effect many have noticed is higher premiums, especially if you live in an area hit by recent disasters or categorized as high-risk. Insurers paid out unprecedented amounts for floods, fires, and hail in recent years, and those costs are now being passed back to consumers. The average Canadian homeowner is paying hundreds of dollars more per year for insurance than a decade ago​, and 2024’s string of catastrophes virtually guarantees further hikes. In practical terms, you might see surcharges or premium jumps at renewal if your region had a severe event (for example, policyholders in Alberta after the 2023 wildfires and storms, or in Ontario after the 2024 floods, saw noticeable increases).

However, the granular, peril-by-peril pricing means premiums are becoming more individualized. In the past, insurers might have averaged out risk over a broad region – now, they differentiate down to neighborhoods or even individual addresses. This could be a relief for some homeowners: if you live on higher ground away from the river, your flood risk (and portion of the premium) may actually be lower than your town’s average, and sophisticated insurers will recognize that. Conversely, if your particular property has elevated risk factors (e.g. backing onto dense forest or an aging roof in hail country), expect to pay more than the average. The spread between lowest and highest premiums in the same city is widening as insurers get better at pinpointing risk. Essentially, there’s less cross-subsidization – low-risk homeowners are less likely to subsidize high-risk ones under the new pricing models.

Another impact is changes in coverage terms and availability. Intact’s tweaks – like limited basement coverage and actual-cash-value roofs for hail​ – are likely to be mirrored by other insurers. Homeowners might find more policies with sublimits (caps) on certain losses, or requirements for higher deductibles in exchange for coverage in high-risk scenarios. For example, an insurer might only offer overland flood coverage with a $10,000 deductible if your home is by a river, or they’ll insure your older roof for hail damage but only on a depreciated value basis. While this can be seen as a reduction in coverage, it’s a way for insurers to keep offering some protection in risky areas without completely withdrawing. As a broker, I make sure my clients read the fine print at renewal time – the coverage you had a few years ago might not be exactly the same today.

On the positive side, insurers focusing on loss prevention partnerships could directly benefit homeowners. Intact’s wildfire prevention program in Western Canada is a great example: if you’re an Intact home insurance customer in parts of BC or Alberta, during wildfire season you might receive extra protection (such as firefighters spraying your property with retardant) at no extra cost​. Some insurers and governments are also working on community-level mitigation – e.g., grants for flood-proofing homes or improving municipal infrastructure – which in time should stabilize or lower insurance costs. The industry is also advocating for stronger building codes and smarter land-use planning (like not building on floodplains)​, which, if implemented, will help make future insurance more affordable and available.

In sum, homeowners are seeing a landscape where insurance costs more, and what you pay is increasingly tied to your property’s features and location. It puts some onus on homeowners to understand their risk profile. The upside is if you take steps to reduce risk, you can stand out to insurers in a favorable way. The downside is that those in high-risk settings may face tough choices – pay significantly higher premiums, invest in mitigating the risk, or potentially struggle to find full coverage. This dynamic will only intensify as climate impacts grow.

Regional Spotlight: Insuring Homes in British Columbia

British Columbia exemplifies the varied risks that modern home insurance pricing must account for. BC homeowners face an almost unique trio of natural perils: wildfire, flood, and earthquake. Insurers have to map and price each of these threats, often layering them much as Intact does, to get the full picture of a home’s risk.

Wildfire Risk in the Interior: In recent years, BC’s Interior has suffered catastrophic wildfire seasons. Entire communities – such as Lytton, BC – have been devastated by wildfire, and suburbs of cities like Kelowna and Kamloops have been threatened or damaged. A home nestled in the forested hills of the Okanagan or Kootenays is in a high wildfire hazard zone, especially during the dry summer months. Insurers now closely track wildfire exposure through satellite data, historical burn maps, and real-time conditions. If you live in an interface zone (where homes meet forest), expect insurers to factor that in heavily. Premiums for fire coverage in these areas are higher, and some insurers apply a separate wildfire deductible or an annual surcharge during wildfire season. In extreme cases, if there’s an active wildfire nearby, insurers might put a temporary hold on binding new policies until the fire is under control (this is a short-term precaution many companies use). On a positive note, insurers like Intact are providing services to mitigate wildfire risk (e.g. WDS protection crews) for policyholders in parts of BC​. And companies encourage steps like FireSmart principles – maintaining a defensible space by clearing brush, using fire-resistant roofing and siding, etc. Homes that follow these practices are less likely to be labeled high risk, and some insurers will reflect that in pricing or even offer specific wildfire insurance products. The bottom line: in BC’s interior, wildfire risk is now a key pricing factor and something homeowners must manage proactively.

A burned foundation surrounded by charred forest in Western Canada. Insurers are increasingly factoring wildfire exposure into home insurance pricing, especially for properties in forested regions.​

Flood Risk in the Lower Mainland: Coastal BC and the Lower Mainland face significant flood exposures, both from heavy rainfall and river overflow. The 2021 atmospheric river event that flooded the Fraser Valley was a wake-up call – it caused widespread damage to homes, farms, and infrastructure. Many insurers had not heavily insured high-risk flood areas (flood coverage was relatively new in Canada and often capped or unavailable in known floodplains), but those that did faced large claims. Today, insurers use detailed flood maps for the Lower Mainland: they consider if a home is on the Fraser River floodplain, near a creek that can flash flood, or in a low-lying coastal area prone to storm surge. If you’re in an identified flood zone, overland flood insurance may come with a steep premium or a high deductible. Some insurers might only offer sewer backup coverage (for water coming up through pipes) but not overland flood if the risk is deemed too high. Others, like Co-operators with its Comprehensive Water product, will offer flood coverage even in high-risk areas but at a price that truly reflects the risk​. Homeowners in places like Richmond, Delta, or low parts of Coquitlam might see these refined pricing differences. It’s also worth noting that the federal and provincial governments are working on a public-private flood insurance arrangement for high-risk homes, recognizing that private insurance alone may become unaffordable for some communities​. For now, in BC’s flood-prone regions, insurers are very cautious – they’ll look at levees, municipal drainage systems, and even your property’s elevation survey when underwriting. Make sure to ask your broker what water damage coverage you have and if any limits apply, because flood risk is a major concern in this area.

Earthquake Exposure: British Columbia’s South Coast (Vancouver, Vancouver Island, and surrounding areas) lies in a seismic zone that could produce a major earthquake. The insurance industry has long treated earthquake as a distinct peril. In BC, earthquake insurance is typically offered as an optional add-on (endorsement) to home insurance policies, and it carries its own deductible – often 5% to 20% of the insured value of the home. This means if you have a $500,000 home policy with earthquake coverage and a 10% quake deductible, you’d pay the first $50,000 of earthquake damage. Insurers price earthquake coverage using sophisticated models that estimate the probability of “the Big One” and the potential damage severity by location. A home in Victoria or Richmond might pay a higher earthquake premium (and face a higher deductible) than one in Prince George, because the quake risk is concentrated along the coast and southern BC. Insurers also manage earthquake exposure by limiting how much total business they write in quake zones (to ensure they can pay claims if a huge event hits) and by purchasing reinsurance – effectively insurance for insurers – to cover catastrophic quake losses. For homeowners in BC, this means two things: (1) You should seriously consider buying the earthquake add-on, because standard policies won’t cover shake damage otherwise; and (2) Expect that earthquake coverage isn’t cheap in high-risk zones, and the large deductible means it’s truly for catastrophe protection, not minor cracks. The evolving part of earthquake insurance is how it’s modeled – some newer models incorporate soil liquefaction maps and building fragility data, which could further refine pricing by neighborhood (for example, homes on soft soil vs. bedrock). While earthquake risk hasn’t materially changed year-to-year (it’s a constant looming threat), the awareness of that risk post-2010s quakes worldwide has grown. Insurers and government discuss solutions like a quake insurance pool or federal backstop, but for now, the risk is handled by private insurance pricing. In short, in BC’s Lower Mainland and Vancouver Island, earthquake is the “elephant in the room” – it might not cause a premium increase this year, but it’s a significant exposure that every homeowner needs to plan for.

Practical Tips for Homeowners to Manage Insurance Costs

In this challenging environment of rising premiums and risk-based pricing, homeowners are not powerless. As a broker, I advise clients across Canada to take proactive steps that can improve or stabilize their insurance rates. Here are some practical tips:

  • Maintain Your Home to Reduce Claims: Insurance isn’t a substitute for upkeep. Carriers reward (or at least recognize) a well-maintained home. Keep your roof in good repair (a newer, resilient roof can earn you a better rate, especially in hail-prone or wind-prone areas). Clean your gutters and downspouts regularly to prevent water backup​. Ensure your siding, windows, and doors are well-sealed against leaks. Fix small issues (like a drip in the basement or frayed wiring) before they turn into big claims. Not only does this directly reduce the chance of a loss, but some insurers also offer discounts for being claims-free over a number of years. Intact’s acquisition of Jiffy and similar services shows how much insurers value maintenance – they know a well-cared-for home suffers fewer losses​.
  • Implement Risk Mitigation Measures: Consider investments that mitigate major perils in your area. If you’re in a wildfire zone, clear brush and trees away from your house and use fire-resistant materials for any renovations (class A fire-rated roof shingles, non-combustible siding). In flood-prone areas, flood-proof your home: install a sump pump with battery backup and a backwater valve on your sewer line​. These devices can prevent or limit basement flooding – and notably, some insurers will give premium credits or incentives if you have a working backwater valve or sump pump​ because it significantly reduces water damage risk. Elevating important equipment (furnace, water heater, electrical panel) above ground level or on pedestals can also lower flood damage​. In older homes or earthquake zones, seismic retrofits (like strapping your hot water tank, bolting the house frame to the foundation, or even a full seismic upgrade for the structure) can make a big difference during a quake and might earn you a discount or at least make insurers more willing to offer coverage. Importantly, document any mitigation work you do – insurers will want to know, and it can support a case for a better rate or continued insurability.
  • Harden Your Home Against Weather: Many insurers are starting to encourage climate-resilient upgrades. For example, impact-resistant roofing can reduce hail damage – some companies in Alberta offer lower rates or deductibles if you use Class 4 hail-resistant shingles after a roof replacement. Upgrading old plumbing and electrical systems not only prevents internal water damage and fire hazards but can also qualify you for discounts with certain insurers (updated systems mean fewer losses). Even installing simple devices like smart water leak detectors or monitored smoke alarms can sometimes fetch a small discount, as these devices catch problems early. Check with your insurer; if they don’t offer an official discount, it still might prevent a costly claim (which keeps your premiums lower in the long run). Think of it this way: an ounce of prevention might save you a ton on your premium over the years.
  • Shop Around and Ask About Discounts: In this competitive market, don’t hesitate to compare quotes from multiple insurers – different companies have different appetites for risk. One insurer might penalize heavily for that nearby creek, while another has a more forgiving model. A broker can help identify which insurer is the best match for your situation. Always ask about available discounts: bundle discounts (combining home and auto insurance with the same company), alarm or sprinkler discounts, loyalty discounts, and even “claims-free” discounts if you haven’t had a recent claim. Every dollar helps when premiums are climbing. Keep in mind, the cheapest policy isn’t always the best – you want a stable insurer with good coverage – but shopping around can at least ensure you’re not overpaying for your risk profile.
  • Review Your Coverage and Deductibles: It’s wise to review your policy annually. Make sure you’re not over-insuring things that don’t need it (e.g. if your jewelry rider is for items you no longer own, remove it). Conversely, check that your coverage limits still reflect current rebuilding costs – construction inflation has been high, and you don’t want to be caught underinsured if disaster strikes. Consider adjusting your deductible as a tool to manage premiums. A higher deductible (like $2,500 instead of $1,000) means you’ll pay more out of pocket for small claims, but it can reduce your annual premium. This can be cost-effective if you’re financially able to absorb a bit more risk and you’re mainly concerned with catastrophes. Just choose a deductible that you could comfortably pay at a moment’s notice. Also, be aware of any separate deductibles (for earthquake, wind/hail, etc.) and plan for those. Sometimes accepting a separate wind/hail deductible can lower your base premium. Always discuss these options with your broker to understand the trade-offs.
  • Communicate and Disclose Updates: Keep your insurer informed about changes that could affect your risk or coverage needs. If you’ve done major upgrades – say you put on a new roof, installed a sump pump, or added a fire suppression system – let them know. They may not automatically re-rate your policy mid-term, but it will be noted and could help at renewal (or at least ensure those upgrades are covered). Likewise, if you’ve removed a risk factor (perhaps you no longer have that wood stove, or you cleared those big trees overhanging your roof), it’s worth telling your insurer or broker. Full disclosure is important; if you fail to mention something significant (like you started renting out part of your home on Airbnb, or you added an extension), it could complicate claims. On the flip side, positive disclosures can sometimes trigger discounts or at least a more favorable view of your policy. It builds trust with your insurer that you’re a responsible homeowner.

By following these tips, homeowners can put themselves in the best position to weather the rising insurance costs. While we can’t control the weather or the ground shaking, we can control how prepared we are. Insurance companies are adjusting their pricing to this new era of risk – and homeowners should adjust their strategy too. Staying informed, investing in resilience, and working closely with your broker will go a long way to ensure you have affordable, adequate coverage for years to come, even as the climate continues to challenge us all.

Let’s Keep Talking:

Jenny is a business insurance broker with Waypoint Insurance.

She is also a business development consultant with Impresario Partners, helping Canadian Business expand overseas.

She can be reached at 604-317-6755 or jhansen@waypoint.ca. Connect with Jenny on LinkedIn at https://www.linkedin.com/in/jenny-holly-hansen-365b691b/.  Connect with Jenny at BlueSky: https://bsky.app/profile/jennyhollyhansen.bsky.social

Let’s Meet Up:

Jenny Holly Hansen is a cohost with Chris Sturges of the Langley Impact Networking Group. You are welcome to join us on Thursday’s from 4pm to 6pm at: Sidebar Bar and Grill: 100b - 20018 83A Avenue, Langley, BC V2Y 3R4

Tags:  #Jenny Holly Hansen #Home Insurance #Climate Change #Intact Financial Corporation #Flood #Wildfire Season #Hail

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