Wildfires, other extreme weather driving insurance costs up over time: experts
The wildfires plaguing residents in Alberta and Nova Scotia are part of a larger trend that’s driving up the cost of home insurance as extreme weather becomes more common, insurance experts say.
“Premiums in Canada have been increasing for some time already,” said Marcos Alvarez, global head of insurance at DBRS Morningstar.
After a large event like the wildfires dominating Canadian headlines, customers in those geographical areas might see their policies re-priced, said Alvarez, or might see insurers becoming more involved: “When you have losses of this magnitude, you might reassess how you approach your underwriting price.”
Over time, these changes on a local level will contribute to the larger trend, he said.