The Insurance Bureau of Canada (IBC) is calling for the creation of a federal disaster recovery agency, warning that climate change is fuelling more frequent and costly extreme weather events that are overwhelming communities and the country’s insurance system.
Ahead of the first anniversary of the wildfire that devastated Jasper, Alberta, the industry group is urging the federal government to take the lead in coordinating emergency preparedness and long-term rebuilding efforts.
“Canada needs a federal co-ordinating agency to guide emergency preparedness and recovery,” said Craig Stewart, IBC’s vice-president of climate change and federal issues. “Every other G7 country has an agency operating in this capacity — it’s time for Canada to follow suit and take on a proactive approach to emergency management.”
The call comes amid growing concern over the slow pace of recovery in Jasper. The July 22, 2024 wildfire destroyed roughly a third of the town’s buildings and caused an estimated $1.2 billion in insured losses.
A year later, only 56 building permits have been issued out of the 358 structures lost — a sharp contrast to the 2016 Fort McMurray wildfire, where most reconstruction was underway within the first year despite the destruction of more than 2,400 buildings.
As rebuilding lags, IBC warned that some residents may soon exhaust their additional living expenses coverage, while businesses could reach the end of their business interruption insurance.
The Jasper fire was one of several major disasters in 2024 that contributed to a record $8.5 billion in insured damages, which is by far the highest annual total on record. The IBC linked the increasing financial toll to climate change-driven weather volatility, rising construction costs, and delays in rebuilding timelines.
In addition to calling for federal coordination, the bureau also urged all levels of government to invest more in wildfire prevention measures, including fire-break construction and land-use restrictions in high-risk areas.
