Canada's Wildfire Season Burns Wide but Spares Insurers, Analysts Say

Canada's 2026 wildfire season is highlighting a growing divide between the scale of physical fire activity and its financial impact on insurers, with the location of the blazes proving more important than the total area burned. According to an assessment by ratings agency Morningstar DBRS, the country's year-to-date burned area has reached roughly 2.95 million hectares, above the ten-year average of about 2.55 million, and nearly 900 wildfires are currently active. Yet the most significant fires have been concentrated in remote parts of Northwestern Ontario and Northern Québec, regions with lower population density, fewer insured properties and less commercial activity, reducing the likelihood of large direct property and commercial losses. Provinces historically most exposed to costly wildfires, British Columbia and Alberta, have seen limited activity so far, well below their seasonal averages. Analysts expect claims tied to evacuation orders, temporary accommodation and business interruption to remain manageable. Insurers are also entering the season in a stronger financial position than in recent years, supported by improved underwriting performance, larger capital reserves and more favourable reinsurance conditions, leaving the sector well placed to absorb losses.