According to the Insurance Bureau of Canada (IBC), insured damages from severe weather events reached $8.5 billion in 2024, marking the costliest year for weather-related insurance losses in Canadian history.
Wildfires played a key role in that total, with the Jasper wildfire alone resulting in $1.23 billion in insured losses, second only to the Fort McMurray fire of 2016. Despite these developments, wildfires and climate adaptation have seen limited focus during the federal election campaign.
An April Ipsos poll conducted for Global News found that climate change ranked 12th among top voter concerns, down from 10th before the election was called. While climate change was discussed during recent leaders’ debates, wildfires were not prominently featured.
Several political parties have outlined policies with potential implications for the insurance industry.
The Liberal Party has committed to investing in wildfire response capabilities, updating building codes in national parks, and supporting programs such as FireSmart.
The Bloc Québécois has proposed a federal reinsurance program for homeowners in Quebec, aiming to maintain access to insurance in areas vulnerable to repeated disaster events.
Other parties, including the NDP and the Greens, have proposed national strategies for emergency response, retrofitting buildings, and expanding climate resilience infrastructure.
The Conservative Party has not yet released a full platform but has spoken about broader energy and emissions strategies.
The financial toll from wildfires and other climate-related events has led to ongoing increases in home insurance premiums, particularly in regions identified as high risk. Insurers have also responded by re-evaluating coverage terms, adjusting underwriting practices, and, in some cases, limiting the availability of policies in areas with repeated or severe natural disasters.
As the frequency and cost of wildfires continue to rise, insurance providers and policymakers are expected to play a central role in managing climate-related risks and ensuring long-term financial protection for Canadian households and businesses.
