North American insurance industry warns of higher claims in wood products as market volatility rises

Surging raw material costs, high tariffs on Canadian lumber, and shifting global trade flows are driving up insurance premiums and exposing valuation gaps across the North American wood products sector. Insurers are warning of rising claims and stricter underwriting as companies face mounting rebuild costs, limited domestic supply, and unpredictable stock valuations. “Claim settlement costs are going to increase,” said Connor Peterson of Keith D. Peterson & Company, a U.S.-based commercial insurance firm with clients in the wood sector. “Valuation models are outdated, and a lot of the raw materials or components are still imported.”  ...