Widespread forest fires in Western Canada have been wreaking havoc in areas in the north of Alberta and British Columbia, threatening lives, businesses, nature and real estate with destruction and other costs that authorities have yet to be able estimate.
Some 117 firefighters and 14 helicopters were sent to fight the conflagration near Fort McMurray, Alberta, that forced the evacuation of about 6,600 residents in southern sections of the city, roughly 10% of the entire city's population, Alberta Premier Danielle Smith said during a press conference Wednesday.
"We are prepared to do whatever is necessary to keep Albertans safe," Smith said.
The fires are the latest in Western Canada that include 84 square kilometres stricken by flames in the area around Fort Nelson, British Columbia, this week.
Fort McMurray is an important hub in Canada's energy industry and some of its notable properties include offices of the Tervita Corp., a Peterbilt industrial structure and an eye-catching 60,000-square-foot two-storey warehouse at 110 Boreal Ave.
Fort McMurray was the site of a wildfire in 2016 that led to $4 billion in insured damage, making it Canada’s costliest natural disaster.
Rising Claims
Natural disasters caused over $3.1 billion in insurance damages last year, making 2023 the fourth-most expensive year on record for Canadian insurers.
Western Canada accounted for the costliest damages as wildfires in British Columbia were responsible for roughly one-quarter of the total, as wildfires burned 2.84 hectares of forest between April and October last year, making it the worst year for forest fires in the province's recorded history.
The average payout insurers made on catastrophic claims between 1983 and 2008 sat in the $400 million range but is now averaging almost $2 billion, according to a statement from Statistics Canada.
The higher amount for payouts led to increased insurance costs in Canada as reflected in the 7.6% hike in home insurance costs for 2024.
A mild winter and unusually low precipitation levels led Glenn McGillivray, managing director for the Institute for Catastrophic Loss Reduction, to predict an earlier start to the wildfire season.
McGillivray told Insurance Business Magazine that Alberta's wildfire season is now starting in February instead of April and the province has hired more firefighters to prepare for this year's blazes.