As climate risks mount, Saskatchewan leads nation in insurance rate hikes

The town of Aberdeen declared a state of emergency over the weekend of April 14 of this year as rapid snowmelt caused major flooding from the resulting runoff. Temperatures climbed to nearly 20 degrees that weekend and several roads surrounding the community had to be closed for the community’s safety. As climate change intensifies, there will be more incidents of flooding, such as what happened in Aberdeen, or fires, as experienced thoughout Manitoba, Saskatchewan and Alberta through May and June. Photo by Renny Grilz/Facebook
When serious flooding hit Aberdeen this April, Meaghan (who asked her last name not to be used) watched her husband jump on an excavator to help divert water out of town.
The town had secured an excavator from a nearby housing construction project, then called on Meaghan’s husband to operate it, simply because he knew how. He wasn’t part of the community’s response team, but it was all hands on deck to help minimize any damage.
“There is always flooding around this one road in town,” she told Sask Dispatch, “but this year we got so much more snow than usual, and it melted so fast.” By late afternoon, the situation had deteriorated from manageable to an emergency. “Had it not been for people in the community stepping up, it would have been disastrous,” Meaghan explains. “But we are a small town, so everyone steps up when they need to.”
Saskatchewan has long been known for its affordability – but that reputation is under threat as costs rise for everything from housing to food. But one unexpected area highlights just how tenuous things have gotten. Over the last decade, Saskatchewan’s home insurance premiums soared by 106 per cent, to an average $1,012. Premiums have grown by 12 per cent since 2023 alone. That’s the highest growth of any province, nationwide. As with any average, the outliers are even more striking: some homeowners say they’re seeing rate hikes of up to 40 per cent.
At a time when inflation is now hovering around 2 per cent, it’s clear that broader economic factors don’t fully explain the spike. The real culprit is the climate.
A wild card only getting wilder
Canada is warming nearly twice as fast as the global average. Saskatchewan, already home to one of the most variable climates on the planet, is feeling that impact in full force.
Daniel Mirkovic, president and CEO of Square One Insurance, warns, “The events that were expected to happen once in fifty years are now happening every three to five years. And when they do happen, they’re causing more damage to homes, resulting in more claims and higher payouts.“
Climate change acceleration
Saskatchewan’s unpredictable climate is not new but the effects of human-caused climate change are making it even more volatile. Reports from ClimateWest, a service supported by the federal and several provincial governments, corroborate this. They highlight key threats to the province, including predictions that it will soon experience longer, hotter summers, with more days exceeding 30C. These will exacerbate drought conditions, increase wildfire risks, and drive up energy demands. Periods of drought followed by heavy rainfall will overwhelm drainage systems and lead to flash flooding.
[...] including predictions that [Saskatchewan] will soon experience more days exceeding 30C. These will exacerbate drought conditions, increase wildfire risks, and drive up energy demands.
Extended dry seasons will result in more frequent and severe droughts, worsening soil degradation and the increasing likelihood of widespread wildfires. Saskatchewan’s already extreme climate variability will intensify, causing sudden storms, deep freezes, and more frequent insurance claims.
Indeed, the province has already seen some of these devastating effects. Saskatchewan’s average insurable losses (insurance companies’ anticipated payouts) have soared by 302 per cent over the last 30 years compared to the period prior. January’s brutal cold snap resulted in hundreds of additional claims, which likely foreshadows even steeper premiums next year.
These insurance challenges don’t affect all Saskatchewan residents equally. Indigenous communities, many of which were historically relocated to flood-prone areas, face disproportionate risks.
With limited access to emergency services, infrastructure, and financial resources for rebuilding, these communities often face prolonged displacement and economic hardship after disasters.
Against this backdrop of growing vulnerability, the provincial government’s response has been inadequate.
The industry’s response
Home insurance isn’t just becoming more expensive, it’s becoming more restrictive, too. As claims skyrocket, insurers are shifting costs onto homeowners in several ways. Those living in flood-prone or wildfire-prone areas face higher deductibles, requiring a bigger out-of-pocket payment before insurance even kicks in. Dozens of Saskatchewanians have flocked to Reddit, lamenting of a “dramatic increase” in their home insurance rates.
Mirkovic noted that some insurers are also imposing coverage restrictions, setting sub-limits on specific weather-related damages, which means homeowners could find themselves only partially covered for certain disasters.
With limited access to emergency services, infrastructure, and financial resources for rebuilding, these communities often face prolonged displacement and economic hardship after disasters.
Perhaps most alarming, homeowners who are the most vulnerable after having suffered repeated losses – especially from flooding or wildfires – are seeing their policies cancelled altogether, leaving them with limited or no insurance options.
Where’s the action?
As Meaghan witnessed first-hand in Aberdeen, when climate volatility strikes, it’s often neighbours who provide the first and most effective response. This pattern repeats across Saskatchewan: while government responds slowly, communities often must mobilize immediately.
The provincial government claims to recognize these challenges in its 2018 climate change strategy, which includes over 40 commitments, with additional goals tracked through the 2024 Climate Resilience Report. But examining the actual progress reveals a troubling gap between promises and action. Take flood protection, for instance: the government pledged to create detailed flood maps for 50 high-risk communities by 2030 – but by 2023, only six communities had received them.
The Saskatchewan Water Security Agency, which manages water supply, defended its pace, citing the collaborative nature of flood mapping and pointing to significant investments in technology. The agency has also launched an ambitious LiDAR scanning initiative, which uses laser technology to build precise 3D maps of terrain. So far, they have mapped out 156,000 square kilometres – an area nearly equivalent to Saskatchewan’s total cropland.
Take flood protection, for instance: the government pledged to create detailed flood maps for 50 high-risk communities by 2030 – but by 2023, only six communities had received them.
Plans to scan an additional 165,000 square kilometres by 2027 would effectively double this coverage, potentially accelerating flood mapping capabilities.
Data collection is important, but it hasn’t translated into tangible protections for all of Saskatchewan’s most vulnerable communities. With three more flood maps released this year and another 20 in draft stages, the province is still far short of the original target. And unfortunately, the slow pace of implementing protective measures isn’t unique to flood prevention. In wildfire preparedness, while 83 per cent of at-risk northern communities are deemed covered, that’s still short of the 100 per cent goal. The province remains 35 per cent short of its target to clear hazardous wildfire-prone land near communities.
Steps to protect
While Saskatchewan residents cannot control the increasing cost of insurance, they can take certain measures to decrease their risks at home.
Regular home maintenance is one of the most effective ways to prevent costly claims. Cleaning roofs, gutters, and external drains ensures proper water flow and prevents water damage. Clearing leaves, trimmings, and debris from yards helps prevent blocked drains and reduces wildfire fuel. Meaghan says her family bought a flood detection system, which helped lower their insurance rates.
The U.S. Community Development Block Grant (CDBG) is one example of how direct financial support for hazard insurance can ensure vulnerable homeowners aren’t left unprotected. Canada is working on a similar program for low-cost flood insurance, which has been this century’s most common and costly disaster for the country. Flooding has caused an average of $800 million in damage annually over the last decade. This protection would be a step in the right direction, but flooding is only part of the problem.
With Saskatchewan facing the steepest rise in home insurance premiums nationwide, the government needs to shift focus from regulation to practical support. Flood prevention and care shouldn’t be left to homeowners alone. Grants for home upgrades, expanding access to risk maps, and investing in wildfire and flood defence could help stabilize insurance costs.
Time is on nobody’s side here. The province needs to take a serious, and immediate, look at its ability to reduce reliance on oil and gas.
But to tackle the root cause, Saskatchewan needs to get on board with green energy. Its efforts seriously lag behind those of other provinces.
In 2023, both Saskatchewan and Alberta said it would be impossible to decarbonize their electric systems by 2035 (when the federal government first hoped it would have a non-emitting electricity grid). And so, they’re passing the buck down the line until 2050 – at which point the provinces allege they will be better equipped to decarbonize their energy.
Time is on nobody’s side here. The province needs to take a serious, and immediate, look at its ability to reduce reliance on oil and gas.
In the meantime, the government could at least offer a band-aid approach. Homeowners deserve support through funding relief programs, strengthened infrastructure, and help with climate-proofing their properties. As the province continues to make excuses and push back climate deadlines, it will be residents continuing to foot the bill and dealing with the consequences, hoping someone in their community knows how to work an excavator.