Atlantic Canada’s insurance market is entering a period of heightened climate volatility, with wildfires, hurricanes, and flooding increasingly shaping underwriting, pricing, and broker advocacy.
Nova Scotia is no exception, according to Donald McDermaid (pictured), President of the Insurance Brokers Association of Nova Scotia (IBANS), who noted that prolonged dry weather and hurricane activity remain the province’s most pressing risks through the second half of 2025 and into 2026.
Nova Scotia is already feeling the strain of extreme weather. McDermaid pointed to drought conditions that have persisted since early summer, leaving rainfall totals far below normal.
“We are experiencing an extremely dry season and like other provinces have experienced wildfires. We are approximately 110mm below average rainfall since early June, and have warm weather in the forecast for the foreseeable future,” he told Insurance Business.
While it’s impossible to predict what will take place in 2026, if this trend continues fires will continue to be a risk, and the drought conditions will impact many of the local growers, he said.
Hurricanes, he added, always pose a significant wind and rain concern for Atlantic Canada, but should the dry conditions from the summer continue through the fall, flash flooding will be an issue throughout the province.
“These storms are also increasing in frequency and severity,” McDermaid said. For insurers and brokers, that means not only higher claims costs but also more complex loss-prevention strategies, particularly as weather extremes increasingly arrive back-to-back within a single season.
While the broader commercial insurance market has softened in 2025 – creating favourable conditions for many buyers – certain industries in Nova Scotia continue to face significant challenges, McDermaid said.
“In general, the commercial marketplace has been very soft in 2025 which benefits customers as more insurers have a broader appetite to write commercial risks,” he said.
Still, he noted that industries with aging infrastructure or elevated risk profiles are feeling the squeeze. The fishing industry, for example, has seen coverage remain available but only at a premium compared to five to seven years ago. With older vessels and equipment in operation, insurers are increasingly factoring in maintenance standards, safety protocols, and replacement costs when setting terms.
“Long haul trucking, especially with US exposure, also continues to be a sector that faces more pressure,” he said, pointing to constraints not only in pricing but also in insurer appetite and restrictions tied to driver experience. Rising cross-border liability risks, higher repair costs, and tighter underwriting scrutiny all add to the strain.
Personal lines, by contrast, remain tougher. McDermaid said availability and pricing are harder in that segment, though solutions are still generally accessible for most customers given the number of insurers competing in the space.
Beyond sector-specific challenges, property risks tied to water are becoming an increasing concern in Nova Scotia. McDermaid pointed to a noticeable reduction or outright elimination of certain coverage for dwellings located near fresh and saltwater bodies.
“This will continue to evolve as new storms bring new data on areas not previously thought to be flood prone,” he said.
Flood mapping updates and shifting availability for coastal coverage are central issues for brokers in the province. IBANS, McDermaid noted, is working closely with other provincial associations, the Insurance Brokers Association of Canada (IBAC), the Insurance Bureau of Canada (IBC), the Nova Scotia Superintendent’s office, and key insurer partners to keep pace with these changes.
“We focus on maintaining those relationships and providing feedback and concerns brought forward by our broker-members to ensure that brokers can meet their promise to protect their clients’ insurance needs,” he said.
For brokers on the ground, this means staying ahead of evolving flood models and educating clients whose homes may suddenly fall into high-risk zones. As McDermaid emphasized, advocacy remains critical to ensure that coverage gaps do not leave households and businesses in vulnerable coastal communities without viable insurance options.
