The Insurance Bureau of Canada (IBC) is warning that wildfire has become a central driver of insured losses and is calling for stronger resilience measures to keep coverage sustainable.
The warning comes as Canada marked 10 years since the Fort McMurray wildfire, still the country's costliest natural catastrophe.
"Fort McMurray was a turning point in Canadian history and was a devastating example of the extreme wildfire risk facing many communities," said Aaron Sutherland, vice-president, Pacific and Western, IBC. "Since that time, we've seen communities in every region of the country impacted by wildfire and, led by Fort McMurray's example, Canadians have endured and rebuilt. But the growing risk is undebiable and without action, more families and more communities will be impacted by wildfire in the years ahead."
Over the past decade, Canada's wildfire season has tended to start earlier, last longer, and be harder to contain. Between 2016 and 2025, about 46.6 million hectares burned across the country, which represents an 81% increase over the previous decade, according to the Canadian Interagency Forest Fire Center.
Meanwhile, CatIQ data cited by IBC showed Canada experienced 16 catastrophic wildfire events over that period, up from just two in the prior decade, while insured wildfire losses rose more than 1,000%, to $8.1 billion from $734 million.
"As wildfires increase across the country, more people are living with the fear that their community could be next," said Sutherland. "Governments across Canada have increased adaptation spending aimed at wildfires over the last five years, but more needs to be done. With 2026 shaping up to be another challenging year, a coordinated effort by all orders of government is essential to help prevent another tragedy like the Fort McMurray wildfire."
The Fort McMurray wildfire forced the evacuation of more than 80,000 residents in the Regional Municipality of Wood Buffalo on May 3, 2016, destroyed over 2,400 properties and generated about 60,000 insurance claims. In 2025 dollars, insured damages are estimated at more than $4.8 billion, making it a reference point for Canadian wildfire risk.
Since then, 2023 has set a new benchmark for burned area, with more than 16–18 million hectares scorched nationwide – more than six times the long-term annual average. Major fires in British Columbia’s Okanagan and Shuswap regions, the Northwest Territories and Nova Scotia contributed to roughly $945 million in insured damage, according to federal and industry data.
At the same time, overall catastrophe losses have climbed. IBC and CatIQ reported that 2024 was Canada’s costliest year on record for insured catastrophe losses, at about $8.5 billion, with around 250,000 claims filed across the country. While floods, hail and severe convective storms made up a large share of that total, wildfires were a significant component and highlighted how multiple perils are being amplified by a warming climate.
IBC argued that this pattern shows wildfire is no longer just a regional concern but a systemic risk for the Canadian property market, complicating efforts by insurers and reinsurers to diversify catastrophe exposure across regions and perils.
In 2025, after what IBC described as the worst year for catastrophic weather events in Canada's history, the bureau released a three-point resilience plan for governments. It also called for keeping new development out of the highest-risk areas and updating building codes for severe weather, investing in hazard mapping, community preparedness and forest management to reduce fuel loads, and closing protection gaps through risk-based pricing and public-private partnerships, rather than blunt market interventions.
In Alberta, IBC is urging that new residential construction in high-risk zones meet the highest tiers of the National Model Building Codes and incorporate wildfire resilience measures by 2028. It also wants high‑risk wildfire zones more clearly identified, with support prioritized for FireSmart programs, wildland–urban interface training and community action plans, along with more active management of dead and diseased trees that add to fuel loads.
A decade on, Fort McMurray remains both a benchmark and a warning, the IBC said.
The event showed how quickly a single wildfire can generate multi‑billion‑dollar insured losses and long‑lasting social and economic disruption. IBC’s message is that, without faster progress on resilience and risk reduction, Canada could see similar or larger events in the years ahead – with significant implications for insurers’ underwriting strategies, reinsurance programs and long‑term appetite for wildfire‑exposed business.
