One-third of Canadians face debt risk from weather shocks

A new survey by Co-operators reveals that 33% of Canadians would need to take on debt to cover a $2,000 weather-related expense. The nationally representative survey, conducted by Burson via Leger between October 9 and 15, 2026, polled 2,000 Canadian adults. It highlights a growing financial vulnerability among households as severe weather events become more frequent.

According to the report, fewer than half of respondents could comfortably handle such an unexpected cost. This finding shows a liquidity gap that climate risk is exacerbating, despite advisors long warning about it.

Climate Resilience: An Economic Security Issue

Rob Wesseling, President and CEO of Co-operators, stated, Climate resilience is more than an environmental issue—it’s an economic security issue. He emphasized that as weather-related costs rise, so do financial pressures on Canadians. Wesseling advocates for tangible policies to reduce future losses and protect households from severe weather impacts, noting that proactive measures are essential to support affordability and mitigate financial strain.

The survey comes as Canada faces mounting severe weather losses. Municipalities require an estimated $5 billion annually to adapt critical infrastructure, a sum that exceeds current public funding. Meanwhile, 78% of respondents believe severe weather events are occurring more frequently, aligning with claims data from the property and casualty sector.

Public Demand for Government Action

The survey reveals strong public support for government intervention. 83% of respondents believe governments should prioritize climate-resilient infrastructure, while 86% back mandatory climate-resilience building standards. Nearly half (49 per cent) favor banning development in floodplains and wildfire zones, and 86% agree that failing to invest in prevention will cost taxpayers more in the long run.

The debate on climate resilience and personal finance has expanded beyond insurance. Against the backdrop of the International Cooperative and Mutual Insurance Federation (ICMIF) Biennial Conference in Toronto, held November 3 to 6, 2026, 13 leading Canadian mutual and co-operative insurers issued a joint statement calling for a national commitment to resilience. Their focus includes smarter infrastructure investments, stronger building standards, and risk-informed development policies, such as modernizing the National Building Code, to ensure communities are better prepared for future climate challenges.

Co-operators’ Climate Leadership

Co-operators, managing over $89 billion in assets, is Canada’s first insurer to join the Net-Zero Asset Owner Alliance. Based in Guelph, Ontario, the co-operative has set ambitious 2030 climate transition goals and aims for net-zero emissions across its investments by 2050. The company has also achieved carbon neutrality in its operations, demonstrating a wide-ranging approach to sustainability.

Wesseling concluded, Building resilience means helping Canadians and our communities prepare for challenges before they happen. Through investments in prevention, preparedness, and adaptation, we can reduce future costs and build stronger communities for generations to come.