Canada is facing what could become its second-worst wildfire season on record, with federal authorities warning that parts of British Columbia are at high risk as the summer progresses. Manitoba has also faced one of the most severe wildfire emergencies in its history with the province battling dozens of active wildfires, and tens of thousands having been evacuated.
Officials have urged both Manitobans and Canadians to reconsider nonessential travel and event plans, as hotel accommodations are urgently needed to house displaced residents. The crisis is not isolated to Manitoba either - with wildfires active in four provinces, emergency response systems and disaster infrastructure nationwide are feeling significant pressure.
Yet it seems that while those pressures mount, those in the insurance industry are often being held back by a host of red tape.
Greg Smith (pictured), president of Crawford & Company, Canada, said that within the insurance sector, one of the pressing operational challenges that often gets overlooked is adjuster licensing. As each province maintains its own licensing framework, claims adjusters must be licensed in the specific province where they plan to operate.
He emphasized that during unpredictable disaster seasons, it is essential to reduce or eliminate licensing barriers so companies can respond swiftly and effectively in regions with fluctuating manpower needs.
“That’s usually the first bottleneck that gets created. Generally speaking, there's good cooperation from the regulators where they're able to accelerate the licensing process or change on a temporary basis what our requirements are, but that one is always front and centre for us”, Smith said.
He added that even with sufficient personnel in terms of headcount, it remains critical to ensure those individuals hold the proper credentials required by each jurisdiction.
Despite these challenges, Smith said that Crawford & Company is currently well-staffed with adjusters across all regions. However, ongoing monitoring of wildfire developments will be essential to inform next steps.
“As we start to add more and more employees to those losses in those provinces, it becomes something that we have to manage,” he said.
To address the licensing challenge, the firm has a dedicated team responsible for anticipating and responding to demand. This group ensures that adjusters are licensed proactively, allowing the firm to remain “one or two steps ahead” in its claims response strategy, Smith said.
He warned that conditions can change rapidly and added that Crawford & Company also tries to proactively secure adjuster licenses in territories known to be vulnerable to recurring catastrophic events.
While wildfires offer limited advance warning, Smith said they are one of the few types of catastrophes that provide at least some notice. Even a short lead time allows the company to mobilize resources, scale capacity, and activate its catastrophe response plan efficiently.
Beyond licensing, Smith said the geography of the crisis presents another significant obstacle. Many of the hardest-hit areas are in remote or rural parts of the affected provinces, where infrastructure is limited and access is difficult. This, he explains, complicates the logistics of insurance response, especially when adjusters must assess widespread damage under tight timelines.
He added that insurers and restoration professionals face mounting pressure to act quickly. Once evacuation orders are lifted and it is deemed safe to return, adjusters must travel into these remote communities to conduct damage assessments. Given the vast areas affected by wildfire, this phase typically involves a coordinated industry-wide effort.
Smith said that the urgency is compounded by Canada’s short construction season in northern regions, where early winters and late springs severely limit the time available for repairs and rebuilding. With only a few workable months in the year, adjusters must work closely with engineers, consultants, and contractors to develop efficient reconstruction plans. He warned that delays at this stage can jeopardize recovery timelines, especially in areas that require the transport of labor and materials over long distances.
However, in the early stages of response, the displacement of policyholders into larger centres has helped streamline certain processes. With many evacuees now housed in cities like Winnipeg, Saskatoon, and even as far as Niagara Falls, adjusters are better able to connect with them directly.
Smith explained that Crawford & Company's national footprint makes a difference in this regard, as staff are already present in many of the cities where evacuees have relocated. This, he adds, facilitates in-person meetings, helping to explain the claims process, build trust, and establish a foundation for what may be weeks or months of ongoing collaboration between adjusters and policyholders.
Speed, he said, is of the essence, as “some are signaling it will be at least several weeks and potentially many months before the communities are safe for people to return to, and before the threat of some of the wildfires subsides.”
