US & Canada wildfire insured losses rising amid increased activity: Aon

Insured losses from wildfires are mounting due to increased activity in Canada and the US, with 574 active fires in Canada and 95 in the US as of August 1, according to Aon’s weekly catastrophe report.

In Canada, the wildfire in Jasper National Park, Alberta, has had the most significant impact. It has become the largest fire recorded in the park in the past century, having burned around 96,000 acres (39,000 hectares) as of August 1. The town of Jasper has seen at least 358 structures (30%) destroyed. The fire is still active and may take several months to fully contain.

In Alberta, nearly 160 fires are currently active, with 70 under control as of late July. Neighbouring British Columbia has about 400 fires, but only a few pose a serious threat to people or property.

In the US, California has been the most affected state. The Park Fire in northern California is the largest fire of the year in the US and the fifth largest in the state’s history. It has burned nearly 395,000 acres (160,000 hectares) across Butte and Tehama counties. As of August 1, Cal Fire reports that 540 structures have been destroyed and 50 more damaged. These numbers may increase as damage assessments are still underway and about 75% complete.

Only 22% of the Park Fire has been contained, and further growth is possible due to heavy fuel loads and low atmospheric moisture. Forecasted thunderstorms could also cause erratic fire behaviour.

Aon stated, “Total economic and insured losses from all the fires currently burning in the U.S. and Canada are expected to reach the hundreds of millions USD, possibly even billions USD. For example, according to the National Interagency Fire Center, the estimated cost of the Park Fire alone is about $52 million while the Falls Fire is at $40 million. Each of the other fires listed in the table above also reaches into the millions USD or tens of millions USD.

“It is important to note, however, that these figures are subject to change and do not simply reflect the number of structures affected, but rather the costs associated with the personnel and technical resources allocated to fire suppression.”

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