Insured losses from Jasper wildfire surpass $880 million
Alberta’s insurers on the ground helping residents beginning the recovery process
Toronto, ON (Aug. 5, 2023) – This summer’s devastating wildfire in the Municipality of Jasper and Jasper National Park resulted in over $880 million in insured damage, according to initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ). The sudden and intense wildfire, which began on July 22, damaged or destroyed a third of the community, making it the second most expensive wildfire in Alberta’s history in insured losses.
“For thousands of residents in Jasper, this has been a time of hardship and heartbreak — homes and businesses lost, lives uprooted and an iconic community forever changed,” said Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC). “Alberta’s insurers have been on the ground assisting customers with financial support and beginning the recovery process. Rebuilding will take time, and our industry will support the community every step of the way.”
Given Jasper’s unique location in a federal park, multiple levels of government are overseeing recovery efforts. IBC is calling on all orders of government to adopt an expedited and coordinated approach to decision-making to ensure reconstruction efforts can begin as quickly as possible.
“In an era in which flooding, heatwaves and wildfires are increasingly common and severe, we have learned the importance of safely returning people to their homes and communities as soon as possible after disaster strikes,” said Craig Stewart, Vice-President, Climate Change and Federal Issues, IBC. “In the coming months, as rebuilding efforts get underway, it will be important that all orders of government work together to establish a clear, effective and efficient decision-making process to ensure consistent progress. Every resident of Jasper must clearly understand the plan to rebuild or repair their homes and businesses as soon as possible. This will ensure the successful renewal of a community that has a special place in the hearts of people across our country and around the world.”
The Jasper Wildfire Complex was one of several major catastrophic events that occurred across the country during a six-week period this summer. Canada’s insurers have also been supporting customers affected by the Calgary hailstorm on August 5, as well as those who experienced major flooding in Ontario and Quebec in July and August. These events have placed immense pressure on insurance adjusters, who are critical following natural catastrophes, as they ensure the industry can support consumers as quickly as possible. IBC and its members are working with governments and regulators to address adjuster capacity across the country, and to help communities adopt strategies to build resilience and mitigate damage from future wildfires.
“Following the devastating wildfire in Fort McMurray, Alberta, in 2016, the municipality did an excellent job undertaking important fire resiliency efforts, with a particular emphasis on reducing home vulnerability through programs such as FireSmart,” added Stewart. “Governments must invest in disaster mitigation, including rolling out similar programs to help communities fire- and flood-proof homes. These investments are critical in helping Canadians prepare for and recover from the impacts of wildfires and other natural catastrophes. As Canada embarks on one of the most ambitious housing plans in Canadian history, we must remember that the most expensive house is the one you have to build twice.”
Wildfire damage is covered by all home and business property insurance policies. Residents who have been affected by the Jasper wildfire or who have questions about their coverage should call their insurance representatives, who are able to support consumers with recovery and reconstruction efforts. Anyone with general insurance questions can contact IBC’s Consumer Information Centre at 1-844-2ask-IBC.
The amount of insured damage is an estimate provided by CatIQ under licence to IBC.
About CatIQ
Toronto-based Catastrophe Indices and Quantification Inc. (CatIQ) is a subsidiary of Zurich-based PERILS A.G. and delivers detailed analytical and meteorological information on Canadian natural and man-made catastrophes. Through its online subscription-based platform, CatIQ combines comprehensive insured loss and exposure indices and other related information to better serve the needs of the insurance / reinsurance / ILS industries, public sector and other stakeholders. CatIQ was established in 2014 with the support of the overwhelming majority of the Canadian insurance and reinsurance industry and is widely recognized as the most reliable source of catastrophe loss information in Canada. For more information, please visit catiq.com.
About Insurance Bureau of Canada
Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up the vast majority of Canada’s highly competitive property and casualty (P&C) insurance market. As the leading advocate for Canada’s private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow. IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses.
For more information, visit www.ibc.ca. If you have a question about home, auto or business insurance, contact IBC’s Consumer Information Centre at 1-844-2ask-IBC.
Source: Insurance Bureau of Canada (IBC)