Preliminary insured losses from Jasper wildfire released

Insured losses from the Jasper, Alta. wildfire have topped $880 million, according to initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ).

The sudden and intense wildfire, which began July 22, damaged or destroyed one-third of the community. The Jasper wildfire is now the second most expensive wildfire in Alberta’s history in terms of insured losses, Insurance Bureau of Canada (IBC) reported Tuesday.

Ratings agency Morningstar DBRS says Canada’s costliest Cat, the 2016 Fort McMurray wildfire, cost $4.4 billion in insured damages. Morningstar DBRS initially estimated the Jasper wildfire could cause up to $700 million in insured damages, with “extra claims” from business interruption.

Claims adjusters are seeing a diverse range of claims on the ground, CRU Group CEO David Repinski told Canadian Underwriter Wednesday. This includes total fire losses, commercial claims related to smoke and business interruption, smoke damage, additional living expense and evacuations, and some auto claims involving total loss.

“The severity varies widely, ranging from minor smoke damage to complete loss of homes and auto, with some cases only involving additional living expenses or evacuations,” Repinski says.

CU also asked if adjusters are facing particular challenges accessing sites or meeting with customers. “At the moment, site access is not an issue; however, we are awaiting the return of some homeowners to gain full access,” Repinski says.

He adds that updates shared by the Canadian Independent Adjusters’ Association on pre-access approvals, requirements and entrance details have been invaluable. “This has been a collaborative effort, greatly aiding in supporting those affected.”

Adjusting firm ClaimsPro also told CU adjusters were granted access to the Jasper area on Aug. 12, when they began “damage assessments to sites and properties that have been completely destroyed and other losses.” The Alberta resort town of Jasper officially reopened on Aug. 16, but it was a limited reopening, Repinski said at the time.

Sporadic damage

“Do not assume or expect that your home is ready to occupy,” the Municipality of Jasper said in its re-entry guide. “The damage to our town has been sporadic and not contained to one area.”

“For thousands of residents in Jasper, this has been a time of hardship and heartbreak — homes and businesses lost, lives uprooted and an iconic community forever changed,” says Aaron Sutherland, vice president of IBC’s Pacific and Western regions, in a press release.

Adds Craig Stewart, IBC’s vice president of climate change and federal issues: “As Canada embarks on one of the most ambitious housing plans in Canadian history, we must remember that the most expensive house is the one you have to build twice.”

Rebuilding the Municipality of Jasper and Jasper National Park will take time, IBC notes.

Insurers have been on the ground assisting customers with financial support and beginning the recovery process. Given Jasper’s unique location in a federal park, multiple levels of government are overseeing recovery efforts, IBC adds.

The industry association is calling on all orders of government to “adopt an expedited and coordinated approach to decision-making to ensure reconstruction efforts can begin as quickly as possible.”

The Jasper Wildfire Complex was one of several major Cats that occurred across the country during a six-week period this summer. The other events include a Calgary hailstorm on Aug. 5, and major flooding in Ontario and Quebec in July and August.

“These events have placed immense pressure on insurance adjusters, who are critical following natural catastrophes, as they ensure the industry can support consumers as quickly as possible,” IBC says. “IBC and its members are working with governments and regulators to address adjuster capacity across the country, and to help communities adopt strategies to build resilience and mitigate damage from future wildfires.”

Repinski confirms adjusters are busy these days. “While we are indeed busy in Jasper, Calgary and Ontario, our business model is designed to scale up quickly to meet demand.”

Feature image: A worker walks in a devastated neighbourhood in west Jasper, Alberta on Monday August 19, 2024. Wildfire caused evacuations and widespread damage in the National Park and Jasper townsite. THE CANADIAN PRESS/Amber Bracken