Whether it’s the wild fires of 2016 in Fort McMurray, Alberta, or tornadoes and flooding in southern Ontario, this article summarizes an eye opening array of catastrophic events across Canada that have resulted in billions of dollars of loss. Although the challenge is daunting, the industry as a whole, should embrace the opportunity (and manage the risks) presented by severe weather and climate change, in a proactive manner. Experts say that if we don’t act quickly, the long term results could be devastating to the industry, all levels of government and ultimately the consumer.
How climate change is impacting home insurance rates in Canada
At this rate, experts say that covering for such losses is “becoming completely unsustainable.” A recent report from financial services firm DBRS Morningstar predicts that insurance providers may start to withdraw property coverage in areas deemed too costly, or worse, avoid insuring certain risks altogether, if circumstances do not change.
