Helping Canadian P&C insurers respond to escalating wildfire risk

OTTAWA, Ontario, Feb. 26, 2026 (GLOBE NEWSWIRE) -- As wildfire seasons in Canada become longer, more severe and more costly, the Canadian Institute of Actuaries (CIA) has released a new document to help property and casualty (P&C) insurers assess, price and underwrite wildfire risk.

Developed by members of the CIA’s Property & Casualty Practice Committee and climate risk experts, Wildfire Risk Considerations for P&C Insurance Pricing and Underwriting provides practical information to support insurers in managing this evolving risk. The document focuses on strengthening analytical approaches while supporting financial stability and regulatory compliance.

“Wildfire risk is no longer a remote or episodic concern for insurers. It is a growing and systemic challenge that requires a proactive approach,” says Shayan Sen, FCIA, Chair of the committee. “This resource is intended to help actuaries and insurance professionals strengthen their approaches to pricing and underwriting as wildfire risk continues to evolve.”

Highlights include:

Wildfire hazard fundamentals: An overview of the key drivers of wildfire risk in Canada, including ignition sources, fuel types, weather conditions, topography, and climate patterns such as El Niño and La Niña.
Risk assessment and quantification: Approaches for identifying high-risk areas and estimating expected and extreme losses, including the use of average annual loss, probable maximum loss and scenario analysis.
Data and modelling considerations: The use of internal and external data sources, hazard maps, climate-related indices, vendor risk scores, and catastrophe models, with attention to data quality and model limitations.
Pricing and underwriting implications: How evolving wildfire risk affects pricing adequacy, underwriting decisions, reinsurance strategies and overall portfolio risk management.
Broader insurance and policy context: Issues related to insurance availability and affordability, mitigation incentives, policyholder education, and collaboration with governments and regulators.

The document is available in English and French on the CIA’s website.

Media contact
Josée Gonthier
Manager, Language Services and Public Affairs
Canadian Institute of Actuaries
media@cia-ica.ca
613-236-8196 ext. 106

The Canadian Institute of Actuaries (CIA) is the qualifying and governing body of the actuarial profession in Canada. We develop and uphold rigorous standards, share our risk management expertise and advance actuarial science to improve lives in Canada and around the world. Our more than 6,800 members apply their knowledge of math, statistics, data analytics and business in providing services and advice of the highest quality to help Canadian people and organizations face the future with confidence.

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