One Year After Jasper Wildfire: Rebuilding Continues Amid Ongoing Challenges

Insurers calling for a national discussion on how to better manage catastrophic events

EDMONTON, AB, July 16, 2025 /CNW/ - July 22, 2025, will be the one-year anniversary of the devastating wildfire that swept though the community of Jasper, Alberta, destroying 358 properties and causing an estimated $1.2 billion in insured damage. As rebuilding efforts progress, numerous residents are still experiencing delays in the reconstruction of their homes and businesses. In response, Insurance Bureau of Canada (IBC) is urging the federal government to lead a national discussion with provinces and territories on how to improve the management of disaster recovery moving forward.

"Over the past year, the people of Jasper have shown tremendous resilience, and insurers will continue to be there every step of the way to support recovery efforts," said Aaron Sutherland, Vice-President, Pacific and Western, IBC. "Following large-scale disasters, insurers' priority is to rebuild and repair property as quickly as possible so their customers can return to their usual lives."

Jasper is situated within a National Park, which means additional measures, including federal soil remediation and recovery requirements, were imposed following the fire. These additional steps have added time, complexity and overall cost to the rebuilding effort, costs which are not typically covered under standard property insurance policies. IBC has worked constructively with the Federal Government, including Parks Canada, on these issues and the Federal Government has committed that it will support the leaseholders by covering the extra remediation costs required to meet Federal remediation standards. The Government has further committed to an expedited process to ensure that the rebuilding process is not delayed further by soil remediation issues.    

As of July 7, 2025, only 56 of the 358 destroyed properties (15%) have received the necessary permits and approvals to proceed with the rebuilding process. In contrast, following the 2016 Fort McMurray wildfires – the costliest wildfire event in Canadian history, much of the reconstruction began relatively quickly and before the fire's first anniversary. In an effort to avoid additional delays in Jasper, insurers continue to actively engage with all orders of government to resolve outstanding issues.

"Delays that prolong the rebuilding process, like we are seeing in Jasper, are occurring more frequently in Canada after large catastrophic events," added Craig Stewart, Vice-President of Climate Change and Federal Issues. "Canada needs a federal coordinating agency to guide emergency preparedness and recovery so that Parks Canada, and other jurisdictions, don't have to create unique playbooks after each catastrophic event. 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."

As delays continue in Jasper, IBC warns that some residents may run out of Additional Living Expenses coverage and many businesses could be exhausting their Business Interruption coverage. It is recommended that policyholders speak with their insurance representative to understand what coverage remains available given these unanticipated delays.

The challenges faced during Jasper's recovery should serve as another alarm bell for governments across the country. That is why Canada's insurers are calling on governments to: increase support for communities to complete FireSmart's Community Wildfire Protection Plans, which include firebreaks and guards around at-risk communities; limit new building in unprotected high-risk areas, enhance building codes to mandate the use of fire-resistant materials; and improve wildfire response and suppression capabilities.

Quick Facts

The Jasper wildfire is estimated to have caused $1.2 billion in insured losses, according to initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ). A one-year insured loss update will be released on July 25.

For the most recent information on recovery efforts in Jasper, visit https://jasper-alberta.ca/p/jasperwildfire.

Immediately following the Jasper wildfire, insurers took several actions to help expedite recovery and reconstruction efforts. These actions include:

• Deploying representatives into the community to provide financial support to policyholders, and assisting them with the claims process;
• Coordinating and paying for a bulk appliance collection and disposal program of contaminated refrigerators and freezers; and,
• Hiring a contractor to facilitate the coordinated debris removal of damaged properties, a process that was completed at the end of April despite challenging logistics and unexpected added costs.

About Insurance Bureau of Canada

Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up the vast majority of Canada's highly competitive property and casualty (P&C) insurance market.

As the leading advocate for Canada's private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow.

IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses.

For media releases, IN Focus articles, or to book an interview with an IBC representative, visit ibc.ca. Follow us on LinkedIn, X and Instagram, and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC. We're here to help.

SOURCE Insurance Bureau of Canada

Media Contact: Brett Weltman, Manager, Media Relations, IBC, [email protected]