Update: Industry prepares for claims from Jasper wildfire as town re-opens

As residents of Jasper, Alta., return home following evacuation orders stemming from a wildfire that destroyed about one-third of the town, Canada’s P&C insurance industry is likewise gearing up for a rebuild after what may become one of the country’s costliest wildfires.

As it stands, there will be a limited opening of the town on Friday, CRU Group CEO David Repinski tells Canadian Underwriter. The Canadian Press reported Aug. 12 people who live in Jasper will be allowed to return Friday, “but wildfire officials say they should not expect to spend the night in their homes.”

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

ClaimsPro tells 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 adjusting firm closely follows Insurance Bureau of Canada (IBC) guidelines for re-entry and operates in alignment with the municipality and emergency services, says Anita Paulic, ClaimsPro’s director of operations & catastrophe response.

“We follow strict Cat health and safety guidelines outlining specific protocols for wildfire loss investigations to ensure we preserve and maintain the well-being of our adjusters and employees during these events.”

Aaron Sutherland, vice president of IBC’s Pacific and Western regions, says in a statement that when returning to a home or business after a wildfire, it’s best to take extra safety precautions and follow the guidance of local officials. “Unseen dangers may linger, so using caution can help reduce the chance of injury. When in doubt, seek advice from an expert.”

ClaimsPro has mobilized adjusters from across Alberta to support the Jasper catastrophes, and they are temporarily stationed close to Hinton, Alta. Paulic says ClaimsPro will meet with insureds in Jasper this week.

For CRU, Repinski says they hope to meet with clients as soon as possible and foresees “early [this] week as residents start the process of moving home.”

 

Technological considerations

What technology is being used to assist adjusters?

ClaimsPro uses field inspection technology that enables adjusters to take and upload photos and produce reports in real time. “We also use 360-degree cameras, which helps to obtain accurate virtual imagery of the site and scope of damages,” Paulic says.

Although adjusting firms can use drones and/or satellite imagery to assist them in claims investigations, CRU hasn’t yet deployed them for the Jasper wildfires, Repinski adds.

He notes wildfires this significant generate a wide range of claims. (Morningstar DBRS said in a late-July report wildfires could cause up to $700 million in insured damages, with likely extra claims from tourism business interruption.)

This includes everything from total fire losses of property to smoke and soot intrusion and damage, as well as additional living expense (ALE) claims. “We anticipate dealing with claims covering the full spectrum of damage and impacts.”

Paulic also expects total losses from the event. “The magnitude of wildfires in the Jasper [area] has left complete destruction,” she says. “We anticipate many total losses of both residential and commercial properties, damage to municipal structures, [and] possible smoke damage.”

IBC was on the ground Friday, deploying its in-person Community Assistance Mobile Pavilion (CAMP) at the Municipality of Jasper’s Re-Entry Centre. CAMP will bring together local insurers and adjusters as well as IBC’s trained insurance professionals to help address consumer questions related to auto, home and business coverage.

Residents can access the latest information about wildfire activity in Jasper on Parks Canada’s Jasper Wildfire Complex webpage. For the latest updates on re-entry and additional information for evacuees, visit the Municipality of Jasper’s re-entry guide.

 

Feature image: Firefighters work in Jasper, Alta., on Friday, July 26, 2024. Wildfires encroaching into the townsite of Jasper forced an evacuation of the national park and have destroyed over 300 of the town’s approximately 1100 structures, mainly impacting residential areas. THE CANADIAN PRESS/Amber Bracken