As we reflect on the consequences of fires, floods and Fiona type wind storms for Nova Scotians we become aware of the huge financial impact of these events on Government and individuals.
Lydia DePillis reports in The New York Times that wildfires are hurting many industries and could strain households across Canada, one of many countries reckoning with the impact of extreme weather.
Mike Savage, the mayor of Halifax, doesn’t have to be convinced that the spending is necessary. His city was the largest to sustain fire losses this spring, with 151 homes burned. That calamity came on the heels of Hurricane Fiona last year, which submerged much of the coastline. Mr. Savage worries about the fate of the isthmus that connects Nova Scotia to New Brunswick, and the power systems that now peak in the hot summer instead of the frigid winter.
“I certainly believe that when you invest in mitigation there’s a dramatic positive impact from those investments,” Mr. Savage said. “It’s going to be a challenging time. To think we got through this fire and say, ‘OK, that’s good, we’re done,’ that would be a little bit naïve.” (DePillis, 2023)
DePillis comments that what long seemed a faraway concern has snapped into sharp relief in recent years, as billowing smoke has suffused vast areas of North America, floods have washed away neighborhoods and heat waves have strained power grids. That incurs billions of dollars in costs, and has longer-reverberating consequences, such as insurers withdrawing from markets prone to hurricanes and fires.
But there is still a long, hot summer ahead. And the insurance industry is on alert, having watched the increasing damage in recent years with alarm. Before 2009, insured losses in Canada averaged around 450 million Canadian dollars a year, and now they routinely exceed $2 billion. Large reinsurers pulled back from the Canadian market after several crippling payouts, increasing prices for homeowners and businesses. That is not even counting the life insurance costs likely to be incurred by excessive heat and smoke-related respiratory ailments. (DePillis, 2023)
References
DePillis, L. (2023, July 3). Canada Offers Lesson in the Economic Toll of Climate Change. The New York Times. Retrieved July 4, 2023, from https://www.nytimes.com/2023/07/03/business/economy/canada-wildfires-economy.html?smid=nytcore-ios-share&referringSource=articleShare
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