The ongoing wildfires in northern Saskatchewan are expected to carry significant economic and insurance-related consequences, with effects extending beyond property loss to several key sectors of the provincial economy.
Keith Willoughby, dean of the Edwards School of Business at the University of Saskatchewan, estimates the total cost of the fires could reach approximately $500 million. The figure is based on early assessments and comparisons to past wildfire events in Canada, including the Fort McMurray fires in 2016 and the Jasper wildfires in 2024, which produced insured damages in the billions.
“In terms of direct and indirect economic costs, Saskatchewan could be looking at a significant financial impact this wildfire season,” Willoughby said.
Direct losses include the destruction of homes, businesses, infrastructure and roads. Indirect effects are expected to include disruptions to supply chains, increased strain on public services, and reduced activity in sectors such as tourism and forestry. Willoughby highlighted that slower delivery of goods to northern communities could be one of several longer-term challenges.
The insurance sector is likely to face an influx of claims related to property damage and business interruption. Willoughby said while insurers are prepared to manage these costs, repeated wildfire seasons could influence how risk is assessed going forward. “If wildfire activity becomes a regular occurrence, insurers may reflect that reality in future premium structures,” he said.
Forestry is among the sectors facing the most immediate impact. Many workers and operations are located in northern regions affected by the fires. The tourism industry, particularly fishing and hunting lodges, may also see decreased activity due to travel disruptions and damage to recreational areas.
Wildfire response costs are also expected to place additional pressure on public finances. Canada spends roughly $1 billion annually on wildfire suppression. Willoughby estimated Saskatchewan’s share could exceed $100 million this year, depending on how conditions evolve.
Additional costs include emergency assistance for displaced residents and the potential reduction in government revenue from industries such as forestry. Willoughby noted that diminished output from these sectors could have budgetary implications for the province.
While mining operations have been largely unaffected so far, Willoughby acknowledged that extended disruptions to transportation or air access could result in delays or added costs to operations in the region.
He said the long-term effects of the wildfires will likely extend beyond northern communities. “The broader economic links across the province mean the impacts are not isolated,” he said.
Though insurance may support recovery for affected businesses and residents, Willoughby added that the longer-term implications will continue to develop as the wildfire season progresses.
