Jasper wildfire expected to cost insurance industry $700M: report
Posted July 29, 2024 4:32 pm.
Last Updated July 30, 2024 9:51 am.
The Jasper wildfire is set to be a costly insurance event.
A new report from credit rating agency Morningstar DBRS puts the price tag at up to $700 million.
Daniel Ivans, a licensed insurance broker, says all Albertans’ rates could be going up to pay for it.
“This is not only an Alberta problem, this is a Canada challenge,” said Ivans, with Rates.ca. “We have wildfires, lots of fires in B.C. and flooding across Ontario, Quebec. Really this is a challenge across the country and mostly led by the challenges related to global warming and climate change.”
Ivans does not believe the fire will have any long-term impact on insurance in Alberta. The $700 million expected to be paid out for Jasper is less than the $4 billion insured damages following the 2016 For McMurray wildfire.
After a 20-hour journey to Edmonton, insurance wasn’t a top concern for some evacuees working in Jasper’s tourism industry.
“I have 1,200 Canadian dollars, that’s it,” they said, referencing the one-time payment per adult from the province of Alberta. “I live in accommodations because I work for Jasper-Banff Pursuit company, and it’s safe, so far it’s OK.”
Insurance wasn’t top of mind for evacuee Reverand David Prowse, either. But he’s thankful to know everything’s covered – even though it doesn’t replace what was lost in the fire.
“I’m an Anglican priest, and I’m sure you’ve seen the pictures as I have on CityTV of the big white church going up in flames, well, that was me,” Prowse told CityNews.
“I was talking a couple weeks ago with my insurance agent in Hinton, and just getting ready for renewals in September and everything — but obviously won’t be renewing the house insurance.”
