Climate disasters don’t just affect local communities—they send shockwaves through the global insurance market. The devastating wildfires in California could contribute to rising insurance costs in Canada, as insurers and reinsurers face record-breaking payouts for climate-related disasters.
Why It Matters for Canadians
- Higher Costs from Global Reinsurers – Canadian insurers rely on international reinsurers, who adjust their pricing based on climate risks worldwide. When California experiences massive wildfire losses, reinsurers can raise prices, and those costs would trickle down to Canadian homeowners.
- Tighter Insurance Markets – As insurers pull out of high-risk areas in California, similar trends are emerging in B.C. and Alberta. Homeowners in wildfire-prone regions are facing skyrocketing premiums and policy cancellations.
- Housing Market Risks – In California, uninsurable homes are losing value, making it harder to sell or secure mortgages. If this trend spreads in Canada, it could weaken housing markets in high-risk areas.
With climate risks increasing, Canada must strengthen insurance protections and encourage climate-resilient building practices. The time to act is now.
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