For insurers, these multi-year fires complicate risk assessment and claims management. Traditional models that rely on historical wildfire patterns may underestimate exposure, especially in regions prone to holdover fires. Prolonged underground burns increase the likelihood of property damage, business interruptions, and evacuation-related losses. Communities in affected areas, such as those in the Northwest Territories in 2023, experienced large-scale evacuations, highlighting both the human and financial impacts insurers must anticipate.
