Insurers urge caution on mass timber

By Jonalyn Cueto
Insurance Business Magazine
April 27, 2026
Category: Wood, Paper & Green Building
Region: Canada

Canada’s insurance sector is calling for more time and data before it can fully evaluate mass timber as a building material, even as its use spreads rapidly across the country, according to a recent policy brief by the Insurance Bureau of Canada (IBC). …Despite the material’s growing footprint, insurers remain cautious. The IBC brief identified three key gaps in available data: long-term structural performance over several decades, the effects of moisture and water-related incidents, and typical repair and replacement costs following fire or other damage. Reinsurance capacity for mass timber projects, particularly mid- to high-rise developments, has also been constrained, which the brief noted directly affects the availability and terms of primary coverage. Insurance broker Aon has noted that limited long-term loss history makes it more difficult for insurers to model risk with the same level of confidence they apply to more established building materials, according to the IBC.

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