Canadian Insurers Urge Homeowners to Fortify Properties and Ask Ottawa to Keep Climate Risk a Priority as Wildfire Season Starts

Canadian insurers are asking both homeowners and the federal government to do more about climate risk as the 2026 wildfire season begins. A Bloomberg report published by BNN Bloomberg on April 14, 2026, describes how the industry is encouraging owners to strengthen their homes and pressing Ottawa to keep climate on its agenda. This article summarises that report. An earlier version of this article named Intact Financial, TD Insurance and Wawanesa as taking part. The Bloomberg report we reviewed quotes only the chief executive of Definity, so the other names have been removed to avoid attributing statements to companies we could not confirm.

What are insurers asking homeowners to do? According to the report, insurers are encouraging owners to flood-proof and fire-proof their homes. Discounts are available for completing risk assessments or installing fire-resistant roofing and siding. This is part of a wider shift toward rewarding mitigation, which is also described in a CBC report on property-level wildfire assessment covered elsewhere on this site. For homeowners, the practical message is that investment in the home itself, such as fire-resistant materials, may reduce the risk and in some cases the premium. The report does not say how large the discounts are.

What are insurers asking governments to do? The industry wants building codes updated so that new homes can withstand climate risks. It wants investment in natural infrastructure, such as wetlands and green spaces that absorb floodwater. It also wants a halt to new construction in areas that are already prone to floods and wildfires. These are asks that affect planning and housing policy as well as insurance, and governments must weigh them against other priorities, including housing supply.

Why are insurers concerned? The report gives several figures. Home insurance premiums rose about 6% last year. Insurance claims hit a record C$9.4 billion in 2024, following the Jasper wildfire, a hailstorm in Calgary and flooding in Toronto. About 32 million hectares have burned in wildfires over the past three years. The federal government plans 3.9 million new homes, and according to the Insurance Bureau of Canada, roughly 500,000 of them could be in high-risk flood zones and over 200,000 in high-risk wildfire zones. The federal government says it has invested more than C$6.6 billion since 2015 in community preparedness and wildland fire management.

What is the political concern? The report says insurers fear that climate has slipped down the agenda as Prime Minister Mark Carney prioritises energy and trade. The chief executive of Definity is quoted as saying, "We're going to... keep it at the top of the table." The wording in the report is ellipsed, and we reproduce only the short phrase in the report. The tension is between building quickly and building safely: faster approvals and more homes can conflict with limits on construction in risky areas. The report presents the insurers' view, and the government's own response is limited to the funding figure above.

Is the industry in trouble? The report says insurers remain profitable. Net income rose 56.7% in 2025 and claims were lower than in 2024. It also notes that calamity-prone areas in Canada are still insurable, unlike in some other countries where insurers have withdrawn from high-risk regions. That is an important point. The concern is not that insurers are failing, but that they want to keep markets functioning in the face of rising risks. Strong profits can be read two ways: they show that the industry can absorb losses now, but they also show that premium increases have been significant, and a profitable industry makes a more credible advocate for long-term prevention.

What does it mean for homeowners? Premiums are likely to depend more on the characteristics of individual properties and areas. Homeowners in high-risk areas may face higher premiums or higher deductibles, and those who invest in mitigation may be rewarded. Prospective buyers can ask insurers about coverage and cost before purchasing a home, especially in flood or wildfire zones. The report does not give a forecast for premiums in 2026 and we do not offer one.

What should readers watch? Three things stand out: whether building codes are updated and applied, whether the federal and provincial governments limit construction in high-risk zones, and how the 2026 wildfire and flood season unfolds. A severe season would test the industry and the political attention given to mitigation. A mild one could make the issue less urgent, even though the long-term trend in risk is upward.

It is also worth noting what the report does not say. It does not give the size of the premium discounts, it does not set out which insurers are offering them, and it does not report any statement from the federal government beyond the funding figure. The picture is therefore the industry's own account of its concerns, delivered at the start of a season in which those concerns could be tested.

This article summarises a news report and is general information, not insurance or investment advice.