‘Waiting game’: P&C industry stands by as Newfoundland wildfires rage

Roughly 20,000 residents around Newfoundland and Labrador’s largest city have been evacuated due to out-of-control wildfires. With so many residents away from their homes, and fire crews urgently responding to the blazes, Canada’s insurance industry readying its response when it’s safe to do so.

“It’s all a waiting game at the moment,” says Glenn McGillivray, managing director of the Institute for Catastrophic Loss Reduction (ICLR). “Because communities get evacuated and fire services are busy defending assets, we rarely get specific info about what is happening.”

Newfoundland and Labrador’s Premier John Hogan says some structures have been destroyed by the out-of-control wildfire near Small Point–Adam’s Cove–Blackhead–Broad Cove and Kingston — which is located across the Conception Bay from St John’s.

That’s currently the best directive the industry has, says McGillivray.

“Right now, the best we can say about the fires in Newfoundland is that ‘some structures have been lost,’ but we have no details as of yet. This is generally what happens in all wildfires,” he adds. “We don’t even know what they mean by ‘structures’; these could be homes or they could be outbuildings, businesses, etc.”

Wildfires reach out-of-control status 

As of Wednesday morning, nine wildfires are currently burning across the province, and five are classified as out-of-control.

Adjusters are monitoring the situation closely — especially given the fire’s proximity to communities, says Christine Segaric, director of Cat response at ClaimsPro.

“While we haven’t seen a significant increase in claims yet, the fires are still out of control. The fire in Newfoundland is of particular concern since it’s near populated areas, and we’re ready to respond quickly if needed,” she says.

About 5,400 residents near St. John’s were told Tuesday to be ready to evacuate at a moment’s notice. Another 15,000 residents in the nearby communities of Paradise and Conception Bay South were placed under evacuation alerts Monday.

Usually, these evacuations bring additional living expense (ALE) claims, says Laura Twidle, president CEO of Catastrophe Indices and Quantification Inc. (CatIQ).

“In general, I can say that yes, for wildfire catastrophes there are additional living expense claims that can be filed on their own or in combination with damage claims depending on how the policyholder has been impacted,” she says.

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“Of all perils, wildfire catastrophes have the highest number of ALE claims due to a wider spread of evacuation orders compared to an overland flood event that would impact a very specific area.”

Thus far in 2025, the province has seen 214 active wildfires and an estimated 15,500 hectares burned, compared to a 20-year average of 118 wildfires and 22,993 hectares burned. The wildfire season in Newfoundland runs from April, and Labrador from May, until September.

Hurricane Erin could bring rain — or winds — to wildfire situation 

Much of Atlantic Canada has been gripped by unusually hot and dry weather this summer, which have stoked extreme wildfire conditions, the Canadian Press reports.

Agriculture Canada said Tuesday that 56% of Atlantic Canada was classified as abnormally dry, and 90% of Nova Scotia is in a moderate drought. The statistics also show St John’s has received only one-third of the rain it usually gets between April and July. In Halifax, the figure is about 40%, according to the Canadian Press.

At the same time as the wildfires, Tropical Storm Erin has formed in the Atlantic Ocean and is anticipated to become the first major hurricane in 2025.

The U.S. National Hurricane Center has issued a forecast of Erin’s winds potentially reaching 115 mp/h over the next 120 hours, which would make it a Category 3 hurricane.

Erin could impact the some islands in the Caribbean sea, namely Bermuda. However, AccuWeather estimates a 70% probability that Erin will not directly impact the U.S. East Coast at this time.

It is too early to determine Erin’s potential impact on Atlantic Canada. However, if it does affect the Maritimes, it could either help or hurt Newfoundland’s wildfire situation, says McGillivray.

“On one hand, if the storm brings soaking rains, it could help the fire situation. If it doesn’t bring much rain but ramps up the wind, it could be detrimental,” he says.

There is a low- to medium-level risk of tropical rain and wind happening in Atlantic Canada between Aug. 20 to 24, AccuWeather forecasts show.

Alyssa DiSabatino

Alyssa Di Sabatino has been a reporter for Canadian Underwriter since 2021, covering industry trends, market developments, and emerging risks.