Morningstar DBRS says in a report that wildfires in northern Ontario do not appear to be translating into severe losses for Canada’s insurance industry, but the situation warrants close monitoring.
The report, released on Wednesday, says the largest fires remain concentrated in remote areas, which limits the direct effect on property and commercial insurance claims.
However, DBRS says the ultimate effect on insurance providers depends less on the total area burned and more on whether the fires threaten major population centres or areas with large amounts of insured property.
Additionally, the report says property and casualty insurers are well positioned to absorb moderate losses from wildfires due to several factors, including strong underwriting profitability, capital buffers and adequate personal-property pricing.
Steve Liu, assistant vice president of global insurance and pension ratings at Morningstar DBRS, says a more severe accumulation of wildfires or other severe weather-related losses would be needed to exhaust insurers’ annual catastrophe budgets.
Early estimates suggest the flames have ravaged more of Ontario’s forests this season than any previous year on record, burning through more than 7,250 square kilometres so far.
This report by The Canadian Press was first published on July 22, 2026.
