Jasper, Canada wildfire industry insured losses surpass $880m:

The insurance industry loss from the wildfires that impacted the Municipality of Jasper and Jasper National Park in Alberta, Canada this summer is estimated to have surpassed $880 million, according to Catastrophe Indices and Quantification Inc. (CatIQ).

It makes the event the second most expensive wildfire in Alberta’s history in insured losses and following on the heels of the more than $940 million in insured losses from severe flash flooding that affected the city of Toronto and parts of southern Ontario in July, it makes for a costly period for the Canadian insurance and reinsurance sector.

The sudden and intense wildfire, which began on July 22nd, damaged or destroyed a third of the community in Jasper, the Insurance Bureau of Canada (IBC) explained.

“For thousands of residents in Jasper, this has been a time of hardship and heartbreak — homes and businesses lost, lives uprooted and an iconic community forever changed,” Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC) said. “Alberta’s insurers have been on the ground assisting customers with financial support and beginning the recovery process. Rebuilding will take time, and our industry will support the community every step of the way.”

The Jasper Wildfire Complex was one of several major catastrophic events that struck Canada during a six-week period this summer placing immense pressure on insurance adjusters, the IBC explained.

“In an era in which flooding, heatwaves and wildfires are increasingly common and severe, we have learned the importance of safely returning people to their homes and communities as soon as possible after disaster strikes,” said Craig Stewart, Vice-President, Climate Change and Federal Issues, IBC. “In the coming months, as rebuilding efforts get underway, it will be important that all orders of government work together to establish a clear, effective and efficient decision-making process to ensure consistent progress. Every resident of Jasper must clearly understand the plan to rebuild or repair their homes and businesses as soon as possible. This will ensure the successful renewal of a community that has a special place in the hearts of people across our country and around the world.”

“Following the devastating wildfire in Fort McMurray, Alberta, in 2016, the municipality did an excellent job undertaking important fire resiliency efforts, with a particular emphasis on reducing home vulnerability through programs such as FireSmart,” Stewart added. “Governments must invest in disaster mitigation, including rolling out similar programs to help communities fire- and flood-proof homes. These investments are critical in helping Canadians prepare for and recover from the impacts of wildfires and other natural catastrophes. As Canada embarks on one of the most ambitious housing plans in Canadian history, we must remember that the most expensive house is the one you have to build twice.”

Insured catastrophe losses in Canada reached CAN $3.1 billion for full-year 2023, which became the fourth most expensive year for the insurance industry on record, according to CatIQ.