Better disaster recovery needed as frequency grows: insurance bureau
TORONTO — The Insurance Bureau of Canada is calling for national discussions about how to better manage rebuilding after disasters as their cost and frequency grow.
The bureau is asking the federal government to lead talks with provinces on disaster recovery as efforts to rebuild Jasper, Alta., encounter delays a year after a wildfire destroyed about a third of the town's buildings.
The calls come as July 22 marks one year of the Jasper wildfire, which caused an estimated $1.2 billion in insured damage. It was just one of several disasters last year that caused about $8.5 billion in combined insured damage to make it by far the costliest year on record.
Costs have climbed as climate change has helped make extreme weather events more frequent and damaging, while the cost of building materials and other factors have also contributed to the increase.
The higher costs of rebuilding also comes as it's taking longer to get repairs going.
Almost a year after the Jasper wildfire, IBC says officials have only issued rebuilding permits for 56 of the 358 buildings that burned down.
The rebuild is going much slower than it did after the 2016 Fort McMurray wildfire, which saw much of the reconstruction start within the first year, despite it being the most costly wildfire event in Canadian history with some 2,400 structures destroyed.
'Delays that prolong the rebuilding process, like we are seeing in Jasper, are occurring more frequently in Canada after large catastrophic events,' said Craig Stewart, vice-president of climate change and federal issues at IBC, in a release issued ahead of the one-year anniversary.
As delays in Jasper continue, the bureau is warning that some residents could run out of additional living expenses coverage and many businesses could use up their business interruption coverage.
Part of the issue on delays is the added regulation from the town being in a national park and the extra remediation rules, but Stewart said a lack of co-ordinated and standardized response is also an issue.
'Canada needs a federal co-ordinating agency to guide emergency preparedness and recovery," he said.
"Every other G7 country has an agency operating in this capacity – it's time for Canada to follow suit and take on a proactive approach to emergency management.'
The insurance association also called for government to better support community wildfire protection initiatives such as firebreaks and limits to new buildings in unprotected high-risk areas.
This report by The Canadian Press was first published July 21, 2025.
The Canadian Press
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
a minute ago
- CTV News
‘This is definitely concerning': Stellantis reports Trump tariff hit as Canadian plant sits empty
Auto giant Stellantis says its estimates show a US$2.68 billion net loss in the first half of the year due to U.S. tariffs and some hefty charges. Auto giant Stellantis says its estimates show a US$2.68 billion net loss in the first half of the year due to U.S. tariffs and some hefty charges. Stellantis is having a rough year, and Canadian auto workers remain anxious about what lies ahead. The maker of Jeep, Ram and Fiat announced Monday it's staring down a massive $3.7 billion loss for the first half of 2025, with U.S. President Donald Trump's auto tariffs delivering a $480 million blow that has forced the company to slash production and shipments. For 3,000 workers at Stellantis' idled Brampton assembly plant, the news is worrying. 'This is definitely concerning for our members, with this news today that the company's lost a lot of money in this quarter,' said Vito Beato, president of Unifor Local 1285. The Brampton facility hasn't been producing cars since late 2023, when a $1.3 billion retooling of the plant began to build the next-generation Jeep Compass. But in February, citing the 'dynamic environment' in the auto sector, Stellantis suddenly hit pause on the retool. Workers were supposed to return by year's end. That now seems unlikely. 'It's looking like they're going to be off well into 2026, if not longer,' said David Kennedy with Automotive News Canada. 'You can understand why the company has kind of pressed pause on it, because they just don't know what's going to happen.' Trump's tariffs are making it more expensive for Stellantis to build vehicles in Canada and ship them to the U.S. Beato started at the Brampton plant in 1992 and says its future being left in limbo is taking a toll on his union members. 'Emotionally, it's very hard, because there's a lot of uncertainty, because the company still hasn't made a decision,' he said. Stellantis had said the retooling pause does not change its investment plans for the plant, but it has not said when work to continue retooling the plant will resume. The tariff impact could get worse. Stellantis Chief Financial Officer Doug Ostermann warned the full-year hit could reach as much as $2.4 billion as the effects compound in the second half of 2025. Some also warn that it could lead to higher prices. When automakers get squeezed by tariffs, they can pass those costs to consumers through price hikes and fewer incentives. Stellantis was already struggling with slumping sales. There's been a massive 25 per cent drop in shipments for North America and the company brought in a new CEO just months ago after the previous one resigned under pressure. The threat of tariffs and the dismantling of electric vehicle (EV) regulations in America have created chaos for the auto sector. Kennedy says Stellantis may be waiting a better sense of how the tariff situation is going to play out before making any further announcements at the Brampton plant. 'I can't imagine something will happen before Aug. 1, and if the uncertainty on tariffs continues, I think we should anticipate not knowing what's going to happen in Brampton for the next few months,' says Kennedy. Stellantis' Windsor Assembly Plant was shut down two weeks earlier this year as the company assessed the impact of tariffs. 'A world with tariffs is unacceptable for us,' Beato said. 'A world with tariffs puts our plant in a vulnerable position, even more so than it is now, and not only for our plant, but all of southern Ontario and the whole auto industry.'
Globe and Mail
a minute ago
- Globe and Mail
How Carney's historic defence spending could change the economy
Ottawa's pledge to spend $150-billion annually on defence-related priorities by 2035 is creating big opportunities for the private sector. Several Canadian companies are preparing to compete for lucrative contracts as Canada aligns its defence spending with NATO allies. Pippa Norman, who covers innovation for The Globe, explains the state of Canada's defence sector, what industry leaders hope Prime Minister Mark Carney will change, and what this government's focus on military spending could mean for the country's economy and reputation as a peacekeeping nation. Questions? Comments? Ideas? Email us at thedecibel@
CTV News
a minute ago
- CTV News
‘Devil is in the details': Canada Post union negotiator urges members to vote against latest offer
CUPW negotiator Jim Gallant on why the union is encouraging worker to reject Canada Post's latest contract offer. As unionized workers at Canada Post begin voting on the Crown corporation's latest offer, one of the Canadian Union of Postal Workers' (CUPW) negotiators is urging members to vote against it, slamming Canada Post for trying to 'control people's lives.' Jim Gallant told CTV Your Morning in an interview Monday that despite the 18-month long negotiation, the latest offer is still not up to the mark, emphasizing 'the devil is in the details.' 'The wording that they have, and this language, just open a wide door that they could drive a motor home through to get what they want,' he said after reading through all the offer documents. Roughly 55,000 unionized Canada Post workers began voting on Monday, after the federal Jobs Minister Patty Hajdu asked the Canada Industrial Relations Board to intervene and put the latest offer to a vote. Meanwhile, Gallant describes the agreement as the opposite of flexible. 'They use the word 'flexibility', but this collective agreement is about control,' he said. 'They want to control people's lives, where you go to work for four hours and by the time you're at work you have to stay for eight hours.' CUPW, along with the Rural and Suburban Mail Carriers and Urban Bargaining Committees, unanimously recommended that Canada Post's final offer be rejected, according a news release by the CUPW. 'These offers fall short of what we've earned, ignore the realities on the work floor, fail to address key demands, and threaten hard-won protections,' the news release said. 'Worse still, Canada Post—backed by the Government—is setting a dangerous precedent,' the press release added. 'From the start, management has shown little interest in fair negotiations. Instead, they're using this forced vote to sidestep bargaining and impose their terms without our consent.' The Crown corporation's offer includes a hike in wages of around 13 per cent over four years and adds part-time workers. Jon Hamilton, a Canada Post spokesperson, said the Crown corporation had operating losses amounting to $10 million a day through June, and in the event the vote is negative, the uncertainty will continue. According to a survey by the Canadian Federation of Independent Business (CFIB) released on Monday, a postal strike could cause the corporation to permanently lose up to 63 per cent of businesses. 'Small business owners deserve a long-term plan and a postal service they can count on,' Corinne Pohlmann, executive vice-president of advocacy at CFIB said in the survey report. According to the CFIB, more than 70 per cent of businesses have encouraged customers to use digital methods, 45 per cent have put their faith in private couriers and 27 per cent delayed mail. 'People can't take care of their children or parents,' Gallant says. 'We need things so we have a reasonable day and know about that day before we show up.' With files from CTV News' Paul Hollingsworth and the Canadian Press
