Science
Jun 16, 20261
59%
Definity and insurers push resilience as wildfire and flood losses rise
Rising flood and wildfire losses in Canada are prompting insurers to move beyond paying claims and toward reducing risk before disasters happen. Definity is expanding broker education, supporting resilience-focused rebuilding and offering added funds for mitigation upgrades during claims.
The company says climate change, development in high-risk areas and larger asset values are making catastrophic losses more expensive, while industry coalitions continue to press governments for broader policy action.
Quick Facts
Who
Definity
What
insurers are rethinking traditional property and casualty risk management
When
recently
Where
Canada
- insurers are rethinking traditional property and casualty risk management
- Definity is expanding broker education on wildfire and flood risks
- Definity has added resilience-focused coverage enhancements for rebuilding
- Definity is participating in policy advocacy through Climate Proof Canada
- the insurance industry is confronting rising costs from more frequent and severe extreme weather
Canada’s growing flood and wildfire losses are pushing insurers to rethink how they manage property risk, as coverage in the highest-risk areas becomes more expensive and, in some cases, harder to obtain. Industry leaders say the problem is being driven by a mix of climate change, more volatile weather, rising asset values and continued development in hazard-prone areas.
Brendan Seale, assistant vice president and head of ESG at Definity, said the underlying conditions for flooding and wildfire are changing, with extreme weather events becoming more frequent and more severe. He said new homes and businesses in floodplains and the wildland-urban interface increase the financial impact of each disaster.
In response, Definity and other insurers are moving beyond a traditional "risk transfer" model toward prevention, risk reduction and resilience-building. The company is using broker education to help advisers explain exposure and mitigation steps to policyholders, including practical factors such as site conditions, defensible space around buildings and other design features that can reduce damage.
Definity has also updated its personal property wordings to include a resilience top-up that can provide up to $10,000 in additional funds for risk-reducing upgrades during a claim, such as fire-resistant roofing, hail-resistant siding, sump pumps and backflow valves. A similar enhancement has been added to its standard commercial building and equipment coverage, reflecting an effort to make rebuilding an opportunity to reduce future losses rather than simply restore what was lost.
The insurer is also involved in Climate Proof Canada, a coalition that has pressed the federal government on housing, infrastructure and emergency management policy. The broader push reflects growing concern across the insurance sector that rebuilding after disasters needs to be paired with measures that lower the cost and severity of future claims.
Why This Matters
For Canadian property owners, businesses, and policymakers, this signals that insurers are increasingly willing to fund risk-reducing upgrades during claims—such as fire-resistant roofing or sump pumps—potentially lowering future premiums. It also means that rebuilding after a disaster may become an opportunity to harden properties against climate impacts, rather than simply restoring what was lost. For brokers and clients, understanding new coverage enhancements and mitigation steps is essential to managing rising insurance costs.
Timeline & Sources
Jun 16, 2026
WireInsurance Business published a report on insurers responding to rising wildfire and flood losses in Canada.