Extreme weather risk changing Canada's insurance industry, raising costs

  • 📰 CP24
  • ⏱ Reading Time:
  • 67 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 30%
  • Publisher: 67%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

Climate change is driving up insurance rates and raising questions about whether private coverage will even be available for some Canadians in the future.

The problem could mean the National Flood Insurance Program that Canada is developing to ensure access to affordable overland flood coverage might have to be expanded to wildfires, wind storms and hurricanes in short order.

Most companies that sell property insurance in Canada turn around and transfer some of the risk associated with their policies to global companies called reinsurers. So when you make a claim to your local insurance agent, that company will in turn cover some of its expenses by buying insurance from a big global backer.

The bureau said severe weather caused about $3.1 billion in insured damage in Canada last year, the third-worst year on record. And there was no single major event — like the Fort McMurray wildfire in 2016 — accounting for a majority of the costs. Some major insurance companies have withdrawn from California and Florida completely in the last 18 months. Farmers Insurance stopped selling home and auto insurance in Florida in July, and State Farm did the same in California in May. In California, it's the high risk of wildfires, and in Florida, hurricanes, driving the companies out.

But he cited a need for better protection from severe weather — fireproof siding in areas of higher fire risk for example, or flood-proofing in areas getting hit more often with heavy rains. Kovacs said usually the best time to make such improvements is immediately after a major event, when people are already rebuilding and the most open to doing so in a way that better protects them in the future.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 30. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Extreme weather risk changing Canada’s insurance industry, raising costsSome tourism and hospitality operators in B.C. are struggling to get insurance at all because the risks to their businesses are too high.
Source: calgarysun - 🏆 63. / 52 Read more »

Extreme weather risk changing Canada’s insurance industry, raising costsSome tourism and hospitality operators in B.C. are struggling to get insurance at all because the risks to their businesses are too high.
Source: calgaryherald - 🏆 64. / 52 Read more »

Extreme weather risk changing Canada's insurance industry, raising costsClimate change is driving up insurance rates and raising questions about whether private coverage will even be available for some Canadians in the future.
Source: CTVNews - 🏆 1. / 99 Read more »