The morning after the Horse River wildfire tore through Fort McMurray, I stood at the edge of what had been the Abasand neighborhood. The smell of charred timber hung thick in the air. Where family homes once stood, only concrete foundations and twisted metal remained.
“We never thought it would come this far this fast,” whispered Robert Jenner, a volunteer firefighter who’d lost his own home while trying to save others. His hands, still blackened with soot, trembled as he pointed to what used to be his daughter’s bedroom.
As Canada faces increasingly devastating climate disasters, the 2016 Fort McMurray wildfire remains a pivotal moment that transformed how communities, governments, and insurance providers respond to catastrophes. The wildfire forced nearly 90,000 people to evacuate and destroyed approximately 2,400 structures, resulting in insured damages exceeding $3.8 billion – making it one of Canada’s costliest natural disasters.
“That wildfire fundamentally changed how we approach disaster response in this country,” explains Dr. Colleen Arthurs, climate adaptation researcher at the University of British Columbia. “It exposed significant gaps in our preparedness and became a catalyst for rethinking disaster management across sectors.”
The insurance industry, in particular, has been forced to evolve. Companies like Aviva Canada have developed more responsive approaches to climate-related disasters that balance business sustainability with humanitarian needs.
Bryant Vernon, Chief Claims Officer at Aviva Canada, describes their shifting approach: “We’ve learned that responding to climate disasters isn’t just about processing claims efficiently – though that matters enormously. It’s about understanding the profound human impact and creating systems that support communities through their most vulnerable moments.”
This value-led approach was tested during the 2023 wildfire season, which saw unprecedented destruction across Canada. According to preliminary data from the Insurance Bureau of Canada, insured damages from climate-related disasters in 2023 may exceed $4.5 billion, potentially surpassing the Fort McMurray record.
When massive wildfires threatened Yellowknife last August, forcing the evacuation of all 22,000 residents, insurance providers faced extraordinary challenges. Roads became clogged with evacuees, communications systems faltered, and claims agents couldn’t physically access impacted areas.
“We had to completely reimagine our response model,” says Mila Romanenko, who coordinates Aviva’s catastrophe response team. “Traditional approaches simply weren’t viable when entire regions became inaccessible.”
The company established virtual command centers, deployed mobile claim units to evacuation centers in Edmonton and Calgary, and developed simplified claims procedures that didn’t require extensive documentation from people who had fled with little more than the clothes on their backs.
I witnessed this transformation firsthand while reporting from an evacuation center in Edmonton. Insurance representatives set up beside mental health counselors and emergency housing coordinators, creating an integrated support system. Evacuees could access immediate financial assistance, temporary housing arrangements, and expedited claims processing in a single location.
“They gave me a prepaid credit card the same day I arrived,” recalls Mariam Tuchscherer, a Yellowknife resident who fled with her three children and elderly father. “I didn’t have to wait for reimbursements or wade through paperwork. That immediate relief meant everything when you’re trying to keep your family together in a crisis.”
This type of rapid response represents a significant evolution in how insurance companies approach climate disasters. Rather than treating these events as unusual anomalies, many providers now consider them an increasingly normal part of operations, requiring specialized teams and protocols.
Statistics Canada reports that climate-related insurance claims have increased by approximately 250% over the past decade, with particularly sharp rises in western provinces. This trend has prompted companies to develop more sophisticated predictive models and pre-positioning strategies.
“When we see concerning weather patterns developing, we now deploy resources preemptively,” explains Vernon. “We position adjusters, contractors, and emergency funds in strategic locations before disasters strike, rather than scrambling to respond afterward.”
This proactive approach extends to communication strategies as well. Insurance providers increasingly coordinate with emergency management agencies and local governments to ensure consistent messaging reaches affected communities.
However, challenges remain. Canada’s Climate Institute warns that without significant adaptation measures, climate-related disasters could cost the Canadian economy $5 billion annually by 2025 and $13 billion by 2050. These figures raise serious questions about the long-term sustainability of current insurance models.
Some communities face particular vulnerabilities. Indigenous communities often experience disproportionate impacts from climate disasters while having less access to insurance resources. Similarly, low-income neighborhoods typically have lower insurance coverage rates, creating inequitable recovery patterns.
“We need to acknowledge that our current system works better for some Canadians than others,” notes Dr. Arthurs. “True resilience means addressing these systemic inequities alongside improving technical responses.”
As I walked through Fort McMurray five years after the wildfire, the physical reconstruction was evident everywhere. New homes stood where ruins had been, and businesses had reopened. But conversations with residents revealed that psychological recovery often takes longer than physical rebuilding.
“The insurance money rebuilt our house, but it couldn’t restore our sense of security,” explained Jenner, the firefighter I’d met in the disaster’s immediate aftermath. “Every time we smell smoke now, every hot, dry summer, we relive that terror.”
This emotional dimension of climate disasters highlights the importance of comprehensive, values-led responses that address both immediate needs and long-term recovery. As Canada faces an uncertain climate future, how we support communities through these increasingly frequent disasters will define our national resilience.
For insurance providers like Aviva and others adapting to this new reality, success may ultimately be measured not just in claims processed, but in how effectively they help preserve the social fabric of communities when disaster strikes.
