Canadian insurers weathering wildfire costs but prices for consumers keep rising

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Canadian insurers weathering wildfire costs but prices for consumers keep rising
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The Canadian insurance industry says weather events like hurricanes, floods, hailstorms and wildfires have caused the number of natural-disaster claims to more than quadruple since 2008

Four of Canada’s largest publicly traded property and casualty insurers remain well capitalized to withstand the increased losses caused by more frequent severe weather occurrences, according to a new report, despite a record-breaking wildfire season.

The Canadian insurance industry has seen the number of natural-disaster claims more than quadruple since 2008 because of weather events such as hurricanes, floods, hailstorms and wildfires. Last year, such events accounted for $3.1-billion of insured losses – up from just $40-million in 2008. Over the past three years, the Insurance Bureau of Canada has seen house insurance prices increase about 14 per cent – with a 5-per-cent spike in premiums in just the past 12 months, Craig Stewart, vice-president of climate change and federal issues at IBC, told The Globe and Mail earlier this year.

More than 100,000 square kilometres have burned in Canada owing to wildfires so far this year, breaking the country’s record set in 1989, when 76,000 square kilometres were burned. Most recently, wildfires have spread to the urban centres of Yellowknife and Kelowna, B.C., forcing thousands of residents to evacuate.

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