Insured losses from Jasper wildfire reach $1.3B, Insurance Bureau of Canada says

New wildfire damage estimates for Jasper continue to climb almost exactly one year after a wildfire destroyed about one-third of the townsite in July 2024.

In a news release on Friday, the Insurance Bureau of Canada (IBC) reported that insured losses from the Jasper wildfire have risen to around $1.3 billion.

The figure, calculated by Catastrophe Indices and Quantification Inc., shows damage cost estimates have increased by $80 million since its last report in January.

Aaron Sutherland, IBC's vice-president of the Pacific and Western regions, said damage estimates have risen significantly as reconstruction of the town drags on. He said the original insured losses estimates were around $900 million.

IBC said the wildfire, which destroyed 358 homes and businesses in the town, is the second-costliest fire event in Canadian history. The 2016 Fort McMurray wildfires caused $6.2 billion in damages.

It reported that the summer of 2024 was the most expensive on record in Canada for catastrophic weather events. Insured damage caused by severe weather in 2024 was over $9.2 billion for the first time in Canadian history.

Residents frustrated with permitting delays

The release also highlighted that permitting delays are slowing the rebuild process for residents.

IBC stated that, so far, 56 structures destroyed by the fire have been approved for reconstruction, and only two of those buildings are currently undergoing actual reconstruction.

Sutherland said some residents are beginning to get upset with the length of the permitting process for rebuilding.

"We are hearing frustration start to grow … It's been 12 months, and we only have 15 per cent of properties approved for construction."

WATCH | Data shows insured losses growing for Jasper residents:

New data reveals Jasper wildfire insured losses just under $1.3 billion

19 hours ago

Duration 1:07

New data shows the insured losses from last year's wildfire in Jasper, Alta., are now an estimated $1.3 billion. This is an $80-million increase from the six-month estimate made earlier this year. The July 24, 2024, wildfire destroyed much of the town, and it has yet to see major reconstruction.

Sutherland said one of the key factors for why it is taking so long to rebuild is the complex soil remediation process required for land where properties burned down.

However, Sutherland said the federal government has stepped in and is providing $5 million in funds to cover the unexpected cost of soil testing and removal, which he said could bolster reconstruction efforts.

He emphasized that it is crucial for construction to begin as soon as possible, or residents may face weather-related delays.

"The construction season is only so long that once winter hits, it's much more difficult to rebuild. So we probably only have a few months left before we're going to miss this reconstruction season entirely."