The Insurance Bureau of Canada (IBC) is urging all levels of government to strengthen risk reduction efforts and support the resilience of the insurance system in response to rising wildfire-related losses.
The statement follows the announcement of the Kananaskis Wildfire Charter by Prime Minister Mark Carney and G7 leaders this week. The Charter outlines a coordinated international approach to managing wildfire risk, which has grown more severe due to climate change.
IBC welcomed the initiative and highlighted the financial pressure that wildfire events continue to place on Canada’s insurance sector.
“In recent years, we have seen a record-breaking number of Canadian properties and forests destroyed by wildfires,” said Craig Stewart, vice-president, climate change and federal issues at IBC. “Between 2003 and 2014, Canada experienced an average of $84 million annually in insured wildfire losses. Since 2014, that number has increased to $706 million annually.”
IBC noted that the rising cost of insured losses reflects broader challenges facing the insurance industry, including the need for updated risk models, stronger building standards and community-level planning to address severe weather events.
The trade association also said it supports a number of measures to improve resilience, including limiting residential development in high-risk wildfire areas, updating building codes to incorporate fire-resistant materials and offering incentives for homeowners and businesses to undertake retrofitting work.
In addition, IBC is calling for more investment in data collection and analysis to support evidence-based decision-making and improve the accuracy of risk assessment used in insurance underwriting.
“The toll these wildfires are taking on Canadians cannot be overlooked,” Stewart said. “Behind the insured loss numbers are families coping with significant disruption.”
IBC also pointed to the role of nature-based solutions, such as prescribed burns, fire-smart forestry, and Indigenous fire stewardship practices, in reducing wildfire risk over time.
With wildfire activity increasing across Canada and globally, IBC said governments and the insurance industry must continue to collaborate to ensure the long-term stability of insurance coverage and recovery systems.
