The Ontario Broker - Volume 22, Issue 4 - 38

INDUSTRY & MARKETS
Canada One Step Closer to National
Flood Insurance Program
Arthur Lofsky, Director, Government Relations and Climate Adaptation Lead, Ontario, IBC
S
o far in 2022, Ontario has faced its share of Canada's
severe weather events, with four major storms causing
damage to homes and businesses. These storms brought
flooding to many corners of the province, including
the Greater Toronto Area, southern Ontario, and the
northwest and eastern regions.
Current climate forecasts project that an escalation in flood events,
as witnessed over the past decade, will continue. At a time when
$2 billion in annual insured losses from severe weather events has
become the norm, Canada must increase its resilience to residential
flood risk to keep people safe and alleviate the financial hardship that
inevitably follow widespread uninsured flood damage.
The good news is that we are inching closer to Canada's first national
flood insurance program.
The federal government recently released the Task Force on
Flood Insurance and Relocation's report, Adapting to Rising Flood
Risk: An Analysis of Insurance Solutions for Canada. Insurance Bureau
of Canada (IBC) commended the federal government for showing
critical leadership in appointing the task force and guiding its work
to conclusion. The report is the culmination of an unprecedented
partnership between insurers and federal and provincial government
officials. The Province of Ontario co-chaired the task force with British
Columbia.
For a long time, Canada's property and casualty insurers have been
on the frontlines, advocating for better flood defences. IBC's call for
a National Action Plan on Flooding during the 2019 federal election led
to the creation of the Task Force on Flood Insurance and Relocation in
late 2020.
One of the most important aspects of the task force report for the
insurance industry is the commitment to a national flood program-
not just a high-risk pool. Insurers have clearly signaled that flood
mapping/risk modelling, physical mitigation, improved building
codes and land-use planning are all necessary parts of Canada's
response to flood risk.
The government has already committed to producing comprehensive
flood maps for the entire country. It has also committed to an online
flood portal that will provide homeowners, municipalities, and
provincial and territorial governments with accessible information to
help guide decisions about whether to rebuild or relocate after a flood.
With the task force report, the federal government now has the
fundamental research necessary to inform a national flood insurance
program. IBC believes that insurers and their broker partners are wellpositioned
to support the government and homeowners with the best
possible public-private insurance program. It also believes that insurers
have the experience and infrastructure to support a quick, seamless
implementation.
As work progresses on the framework for the flood insurance
program, IBC will continue to advocate for a national adaptation
strategy that results in tangible short-term measures to improve
Canada's climate defense. IBC is leading the national coalition Climate
Proof Canada, which is advocating for adaptation as part of the
national climate plan. The coalition is supported by numerous national
organizations, including the Insurance Brokers Association of Canada.
Climate Proof Canada's main message is that governments at all
levels must act with urgency to prioritize investments that reduce the
impact of these severe weather events on families and communities.
In the coming months, IBC and its Climate Adaptation Working
Group look forward to being part of the industry team working with
the federal government to translate the task force's research into a
program capable of offering flood insurance to the myriad Canadians
who have property at high risk of flooding. A national flood insurance
program could help close the insurance protection gap for the
approximately 1.54 million homeowners in Canada whose properties
are at such high risk of flooding that private insurance is either
unavailable or unaffordable.
" A national flood insurance
program could help close
the insurance protection
gap for the approximately
1.54 million homeowners in
Canada whose properties are
at such high risk of flooding
that private insurance
is either unavailable or
unaffordable. "
38
THE ONTARIO BROKER
The Ontario Broker - Volume 22, Issue 4

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