Alberta fires push Canada's insurable damage to record $4.9B in 2016: IBC

The Insurance Bureau of Canada says last year set a record for insurable damage estimated at more than $4.9 billion.

The industry group says that's $1.7 billion higher than the previous full-year record set in 2013, when insurable damage totalled $3.2 billion.

Canada's most costly disaster last year, according to the Insurance Bureau, was the Alberta wildfires that forced the evacuation of Fort McMurray, Alta., and surrounding areas.

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The Insurance Bureau says the wildfires resulted in about $3.7 billion in insured damage, making it twice as expensive as the previous most expensive natural disaster on record.

Insurance Bureau president Don Forgeron says the industry is calling on governments to bring in policies that prepare Canadian communities for more severe weather due to global climate change.

"The record damage reported in 2016 is part of an upward trend that shows no signs of stopping," Forgeron said in a release.

"Canadians must be prepared both physically and economically for when these disasters inevitably strike," he also said. "Addressing current gaps in public policy and consumer protection can only be possible if industry and government work together in the areas of mitigation, adaptation and emergency management all of which form the basis of a comprehensive climate strategy."

Forgeronsaid the insurance industry will continue to press for a national flood program, saying Canada lags behind every other G7 nation when it comes to flooding.