The 2023 wildfires in Quebec caused economic losses of more than $8 billion, according to research by climate consulting firm Nada Conseils. The 2023 season was the most destructive on record in Quebec.
The study found that forestry and mining operations were among the hardest hit, as widespread blazes forced production shutdowns and disrupted supply chains. Businesses across affected regions also suffered significant financial setbacks, while the study highlighted increased healthcare costs associated with smoke exposure.
Property and casualty insurers faced a surge in claims related to residential, commercial, and industrial losses, straining underwriting results in Quebec and across Canada. Reinsurers also absorbed a substantial share of the impact, reflecting the scale of the catastrophe.
However, not all losses were insured. Analysts noted that while a portion of the $8 billion fell under commercial and personal insurance coverage, billions in costs tied to forestry, mining, and public infrastructure were either uninsured or underinsured, leaving governments, businesses, and individuals to shoulder the financial burden.
The disparity underscored a growing protection gap in climate-related disasters, where insured losses represent only a fraction of the true economic impact.
Meanwhile, the high costs have renewed discussion on the future availability and affordability of coverage in wildfire-prone regions. Rising losses could lead insurers to reassess pricing, impose tighter underwriting standards, or limit capacity in areas where the risk is concentrated.
The findings also raised questions about the adequacy of current catastrophe models, which may need further refinement to reflect the accelerating frequency and severity of wildfire events.
Policymakers, businesses, and insurers are expected to face growing pressure to invest in fire prevention, adaptation measures, and climate resilience strategies as the province confronts the economic and social costs of increasingly extreme wildfire seasons.
