Atlantic Canada's wildfire season is intensifying, and insurance experts are warning that the region's shifting climate and forest management practices are creating long-term risk challenges for insurers and policyholders alike.
University of New Brunswick forestry scientist Anthony Taylor said that decades of limited action on climate change have contributed to warmer, drier conditions that are fuelling larger and more frequent wildfires. Taylor explained that such weather patterns are expected to persist and worsen, making wildfires an increasingly common feature of the regional landscape.
According to a report from CTV News, drought conditions, higher temperatures and human-caused ignitions are key drivers behind the recent surge in wildfire activity. More than 90% of wildfires in Atlantic Canada originate from human activity, underscoring the importance of public awareness and prevention measures.
For insurers, this high rate of preventable ignition could have a direct impact on loss frequency, risk modelling and underwriting decisions.
The past two years have already demonstrated the growing threat. Nova Scotia's Barrington Lake in 2023 destroyed 60 structures and burned more than 23,000 hectares, while this year's Long Lake fire became the province's longest-burning wildfire, taking six weeks to bring under control. In New Brunswick, the Oldfield Road blaze in Miramichi covered more than 1,400 hectares.
As wildfires become more common in areas historically viewed as low-risk, insurers are facing rising pressure to reassess property coverage, pricing, and reinsurance capacity. Once considered a Western Canadian problem, wildfire risk is now spreading eastward, testing the limits of existing catastrophe models and local mitigation efforts.
Taylor also noted that the makeup of regional forests affects how fires spread. Hardwood and mixed-wood forests are less flammable than dense conifer plantations, yet the latter are often replanted due to industrial demand. He said integrating greater diversity in reforestation practices could help slow the spread of future wildfires, providing a natural buffer that could reduce insured losses.
Provincial fire bans, such as those recently enforced in Nova Scotia, reflect growing recognition of the heightened risk. For insurers, these measures form part of a broader effort to strengthen community resilience and reduce claims exposure.
The Insurance Bureau of Canada has repeatedly urged governments to prioritize adaptation measures, and the situation in Atlantic Canada highlights why. With the wildfire threat expanding beyond traditional hot spots, insurers and regulators may need to collaborate more closely to balance affordability, availability, and long-term sustainability in Canada’s property insurance market.
