British Columbia’s unprecedented 2023 wildfire season, marking the largest burned area in recorded history, has incurred insurance costs exceeding $720 million, according to a report by the Insurance Bureau of Canada. This financial toll surpasses that of any other extreme weather event in the country during 2023, prompting concerns about the future accessibility and affordability of wildfire and flood insurance for Canadians.
The Insurance Bureau of Canada contends that the losses sustained during the historic wildfire season will pose challenges for Canadians seeking such insurance coverage in the future. Craig Stewart, the Bureau of Canada’s Vice President of Climate Change and Federal Issues, emphasized the need for progress on the federal government’s commitment to a national flood insurance program, which was outlined in the previous year’s Federal Budget.
Stewart highlighted the urgency of launching the program to provide financial protection and peace of mind for Canadians living in high-risk areas, particularly given the increasing frequency and severity of climate-related disasters. He stressed the importance of sharing program details with the insurance industry and provinces during the winter to ensure operational readiness before the next federal election.
The total estimated insured damage across the country for 2023 is approximately $3.1 billion, underscoring the escalating financial impact of yearly extreme weather events, routinely exceeding $2 billion in damages annually.
Global News reached out to the Canadian government for comment, and a federal spokesperson responded via email. The spokesperson highlighted the Government of Canada’s commitment to investing $164.2 million in the Flood Hazard Identification and Mapping Program (FHIMP) under the National Adaptation Strategy over the next five years. Additionally, Budget 2023 includes a $15.3 million investment over three years to create a publicly accessible online portal for Canadians to access information on their exposure to flooding. Program details are in development and will be communicated to Canadians in due course.
In British Columbia alone, wildfires ravaged more than 2.84 million hectares of land in 2023, emphasizing the urgent need for comprehensive measures to address the increasing risks associated with climate-related disasters.
