Rebates and retrofit programs called crucial as wildfires drive huge insured losses
Canada’s insurance industry is urging stronger incentives for homeowners and businesses to better protect their properties from wildfires. This comes after new figures revealed the August wildfire in Kingston, Newfoundland and Labrador, led to more than $70 million in insured losses, the highest in Atlantic Canada this year.
The wildfire, which ignited on August 3, 2025, swept through the Conception Bay North region, forcing the evacuation of more than 3,000 residents and damaging homes, businesses, and critical infrastructure across at least nine communities.
“As weather-related disasters, such as wildfires, continue to occur more often, they are placing pressure on claims costs from coast to coast. Amid calls for action, the solution is clear—we must properly invest in making our homes, businesses and communities more resilient against severe weather,” Amanda Dean, vice-president for Ontario and Atlantic at the IBC, said.
Calls for action have focused on a multi-pronged approach: updating building codes to reflect modern wildfire risks, supporting community preparedness plans, and critically, introducing targeted incentives such as rebates and retrofit programs to encourage resilience upgrades.
Rising insurance costs posed growing challenges for homeowners across North America in recent years, with a slew of home insurers fleeing the California and Florida markets as weather- and climate-related losses climb.
The IBC and other stakeholders have also advocated for nature-based solutions, including controlled burns and fire-smart forestry, alongside a proactive, coordinated approach to emergency management.
Industry experts say more frequent and severe weather is driving up insurance claims. Insurance Bureau of Canada (IBC) reported a 379% increase in annual insurable losses over the past decade, with a record 228,000 claims. That's 406% above the 20-year average.
In 2024, Desjardins stopped issuing new mortgages in Quebec’s flood-risk zones, reflecting growing caution in the sector. CUMIS General Insurance Company will exit Alberta’s home and auto market in January 2026, citing ongoing challenges in the province’s insurance sector.
Other insurers have also pulled back: Sonnet Insurance ended auto coverage in Alberta in December 2024, and Aviva Canada's direct-to-consumer home and auto business there in January 2025. Both companies pointed to strict rate caps and rising claims costs from natural disasters as reasons for their decisions.
