Escalating Wildfire Threats in Atlantic Canada Challenge Insurers and Communities
October 20, 2025
Wildfire activity in Atlantic Canada is escalating, driven by climate change, drought, higher temperatures, and human-caused ignitions, which account for over 90% of wildfires in the region.
Most wildfires in Atlantic Canada originate from human activity, primarily preventable ignitions, significantly impacting risk management for insurers.
The wildfire season in Atlantic Canada is intensifying due to warmer and drier conditions, leading to larger and more frequent fires.
Insurers are facing increased challenges in risk assessment, property coverage, and reinsurance capacity as wildfire risks expand eastward into areas once considered low-risk.
Wildfire risk is rising in regions previously deemed low-risk, prompting insurers to reassess property coverage, pricing, and reinsurance strategies.
Provincial fire bans and mitigation measures, such as those in Nova Scotia, are being implemented to address the heightened wildfire threat and bolster community resilience.
The composition of regional forests influences fire spread; dense conifer plantations, often replanted for industrial purposes, are more flammable, but increasing forest diversity could help reduce future wildfire damage.
The Insurance Bureau of Canada advocates for government actions focused on adaptation and mitigation, emphasizing collaboration between insurers and regulators to sustain the property insurance market amid growing wildfire risks.
Recent wildfire events, including Nova Scotia's 2023 Barrington Lake fire that destroyed 60 structures and burned over 23,000 hectares, and the 2025 Long Lake fire, highlight the increasing severity of wildfire threats in the region.
Summary based on 2 sources
Get a daily email with more Climate change stories
Sources

Insurance Business • Oct 20, 2025
Rising wildfire threat in Atlantic Canada poses growing risk challenge for insurers
Insurance Business • Oct 20, 2025
Rising wildfire threat in Atlantic Canada poses growing risk challenge for insurers