Much like in Florida and California, the increase in natural disasters in the form of fires, flooding, and storms has been causing major increases in insurance premiums for Canadians, leaving many in a position where they’re unable to find affordable coverage. Not only that, there’s also the threat of various approved providers withdrawing from regions more prone to these disasters, further limiting options for those seeking to protect their property.
In the last 15 years, according to the Insurance Bureau of Canada (IBC), insured disaster claims in the country have climbed from $400 million in 2008 to $3.1 billion in 2022, with at least another $3 billion to be paid out by the end of 2023, in response to both the worst wildfire season on record, and severe flooding in several areas.
These trends in Canada follow those worldwide, with insured losses from climate-related disasters reaching $50 billion in the first half of 2023, and at least 16 distinct disasters causing at least a billion dollars in damages. Says Lisa Guglietti, executive
vice-president of property and casualty at The Co-operators Group Ltd., “Those trends are really concerning and what’s more concerning is that they’re continuing to escalate year over year. These weather events aren’t going to flatten out on their own. The frequency is going up and the severity of the damage that they’re causing is going up. Add this to inflation, supply chain issues, the increasing cost of labour and material and soaring interest rates – and it’s really driving up the cost to rebuild, whether it’s homes, businesses or infrastructure.”
Source:
https://www.theglobeandmail.com/business/article-insurance-coverage-climate-change/
