Latest loss estimate for summer 2024’s Jasper wildfires

Six months after the Jasper, Alta. wildfires, which were active between Jul. 22 and Aug. 17, 2024, Catastrophes Indices and Quantification Inc. (CatIQ) has updated its loss estimate to $1.233 billion.

That’s up from the $1.053 billion loss estimate issued 90 days after the event. The total covers both commercial and residential property and vehicle (motor) claims, CatIQ notes in a press release, adding commercial changes led to the increase between estimates.

“The Jasper wildfire is the second costliest wildfire on record for Canada, behind the 2016 Fort McMurray wildfire which, at the time, generated insured losses of $3.64 billion and 33,000 personal property claims,” Laura Twidle, CatIQ’s president and CEO says in the release. “Though the Jasper event resulted in only about 1,700 personal property claims, the sums are much larger – on average more than four times the amount of the claims from Fort McMurray. This underscores the reality that a fire does not need a massive footprint to cause significant losses.

“The wildfire caused significant damage to the Jasper townsite and the surrounding area, forcing thousands of people from their homes for nearly a month, with many properties destroyed.”

Related: What brokers can learn from the Jasper wildfire

Every year since 2021, Canada’s experienced at least one fire-related Cat event, including fires in Kelowna, B.C. and near Halifax during 2023, CatIQ notes.

“While these fires affected larger population centres than the Jasper fire, the property damage at the Jasper townsite was much more extensive,” it adds. “Notably, commercial line losses make up more than half of the incurred losses in Jasper.”

Rebuilding Jasper will be a complex and lengthy undertaking, sources told CU last fall. Specifically, a complex, century-old land leasing arrangement and strict regulations for development on Parks Canada land suggest municipal, provincial and federal governments all will be involved.

Claims processes following the fire were also difficult due to evacuation orders that kept both adjusters and residents out of town for weeks after the fire started, sources said earlier this year.

The next update on losses from the wildfires will be issued Jul. 22, 2025, which marks one year since the fire’s start date, says CatIQ.

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