Insured losses from Jasper wildfire rise to nearly $1.3 billion
Permitting delays slow rebuilding one year after wildfire
Edmonton, AB (July 25, 2025) – Insured losses from the Jasper wildfire are now estimated to be close to $1.3 billion, according to new data released by Catastrophe Indices and Quantification Inc. This is an increase of $80 million over the six-month estimate from CatIQ in January.
“One year after the second-costliest fire event in Canadian history, many residents are still working through the process of securing the proper permits to begin reconstruction of their property,” said Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada. “Despite delays, residents can rest assured that insurers will stand with them until every claim is closed.”
The July 24, 2024, wildfire destroyed 358 homes and businesses in the town of Jasper. Today, only 56 (15%) are approved for reconstruction, and only two buildings are currently being rebuilt.
“The federal government recently announced that it would be expediting efforts moving forward and providing up to $5 million in additional support to cover the unexpected cost of soil testing and removal. This is a positive move and one that hopefully bolsters reconstruction efforts to begin in earnest,” said Sutherland. “There’s still a lot of work to do and rebuilding will take time, but there is light at the end of a very long tunnel for Jasper residents who lost so much in the fire. The people of Jasper have shown tremendous resilience, and Alberta’s insurers will continue to match that spirit and support their customers every step of the way.”
Alberta’s insurers have been on the ground in Jasper since the first day of the fire and are continuing to provide financial support to residents who lost their homes. Insurers also coordinated and paid for the removal, de-gassing and proper disposal of about 2,300 fridges and freezers ruined by food spoilage due to prolonged power outages during several weeks of the evacuation. This coordinated residential bulk-debris-removal program is helping to reduce costs and speed up recovery in the community. In April, wildfire recovery efforts reached a significant milestone with the completion of the insurer-coordinated debris removal program.
Insured damage caused by severe weather events in 2024 surpassed $9.2 billion for the first time in Canadian history (January 2025 estimate was $8.5 billion). Last summer was the most expensive on record in Canada for catastrophic weather events, with 228,000 insurance claims and over $8 billion in insured damage. These events are placing pressure on insurance premiums in Alberta and across the country, and are important reminders of the need to increase investments in resilience and other measures to better protect communities.
Governments across Canada have a critical role to play in better protecting Canadians from natural disasters. This includes:
- Halting the construction of unprotected homes and businesses in high-risk flood and wildfire zones
- Investing in vulnerable communities to ensure they are FireSmart and better protected against flooding
- Helping homeowners understand the specific risks they face in their area
- Subsidizing home retrofits to help reduce exposure to floods and wildfires.
Canada also needs a federal coordinating agency to guide emergency preparedness and recovery so that communities across the country don’t have to create unique playbooks after each catastrophic event. Every other G7 country has an agency operating in this capacity – it’s time for Canada to follow suit and take a proactive approach to emergency management.
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), a subsidiary of Zurich-based PERILS AG, is Canada’s loss and exposure indices provider, delivering detailed analytical and meteorological information on Canadian natural and human-made catastrophes. Through its online subscription-based platform, CatIQ caters to the needs of the insurance / reinsurance / ILS industries, public sector, and other stakeholders, with comprehensive insured loss and exposure indices and related information.
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.
Source: Insurance Bureau of Canada (IBC)
Backgrounder:
One Year After Jasper Wildfire: Rebuilding Continues Amid Ongoing Challenges
Insurers calling for a national discussion on how to better manage catastrophic events
Edmonton, AB (July 16, 2025) – July 22, 2025, will be the one-year anniversary of the devastating wildfire that swept though the community of Jasper, Alberta, destroying 358 properties and causing an estimated $1.2 billion in insured damage. As rebuilding efforts progress, numerous residents are still experiencing delays in the reconstruction of their homes and businesses. In response, Insurance Bureau of Canada (IBC) is urging the federal government to lead a national discussion with provinces and territories on how to improve the management of disaster recovery moving forward.
“Over the past year, the people of Jasper have shown tremendous resilience, and insurers will continue to be there every step of the way to support recovery efforts,” said Aaron Sutherland, Vice-President, Pacific and Western, IBC. “Following large-scale disasters, insurers’ priority is to rebuild and repair property as quickly as possible so their customers can return to their usual lives.”
Jasper is situated within a National Park, which means additional measures, including federal soil remediation and recovery requirements, were imposed following the fire. These additional steps have added time, complexity and overall cost to the rebuilding effort, costs which are not typically covered under standard property insurance policies. IBC has worked constructively with the Federal Government, including Parks Canada, on these issues and the Federal Government has committed that it will support the leaseholders by covering the extra remediation costs required to meet Federal remediation standards. The Government has further committed to an expedited process to ensure that the rebuilding process is not delayed further by soil remediation issues.
As of July 7, 2025, only 56 of the 358 destroyed properties (15%) have received the necessary permits and approvals to proceed with the rebuilding process. In contrast, following the 2016 Fort McMurray wildfires – the costliest wildfire event in Canadian history, much of the reconstruction began relatively quickly and before the fire’s first anniversary. In an effort to avoid additional delays in Jasper, insurers continue to actively engage with all orders of government to resolve outstanding issues.
“Delays that prolong the rebuilding process, like we are seeing in Jasper, are occurring more frequently in Canada after large catastrophic events,” added Craig Stewart, Vice-President of Climate Change and Federal Issues. “Canada needs a federal coordinating agency to guide emergency preparedness and recovery so that Parks Canada, and other jurisdictions, don’t have to create unique playbooks after each catastrophic event. 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.”
As delays continue in Jasper, IBC warns that some residents may run out of Additional Living Expenses coverage and many businesses could be exhausting their Business Interruption coverage. It is recommended that policyholders speak with their insurance representative to understand what coverage remains available given these unanticipated delays.
The challenges faced during Jasper’s recovery should serve as another alarm bell for governments across the country. That is why Canada’s insurers are calling on governments to: increase support for communities to complete FireSmart’s Community Wildfire Protection Plans, which include firebreaks and guards around at-risk communities; limit new building in unprotected high-risk areas, enhance building codes to mandate the use of fire-resistant materials; and improve wildfire response and suppression capabilities.
Quick Facts
The Jasper wildfire is estimated to have caused $1.2 billion in insured losses, according to initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ). A one-year insured loss update will be released on July 25.
For the most recent information on recovery efforts in Jasper, visit https://jasper-alberta.ca/p/jasperwildfire.
Immediately following the Jasper wildfire, insurers took several actions to help expedite recovery and reconstruction efforts. These actions include:
- Deploying representatives into the community to provide financial support to policyholders, and assisting them with the claims process;
- Coordinating and paying for a bulk appliance collection and disposal program of contaminated refrigerators and freezers; and,
- Hiring a contractor to facilitate the coordinated debris removal of damaged properties, a process that was completed at the end of April despite challenging logistics and unexpected added costs.
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.
Source: Insurance Bureau of Canada (IBC)