The president and CEO of a major insurance company recently gave his two cents about the flood situation in Canada, commenting that his fellow insurers should try to go out of their way to educate their customers about flooding to improve the nation’s resilience to the natural disaster.
Rob Wesseling of The Co-operators made it clear that flooding is an issue that will continue to affect Canada as the insured costs related to the catastrophes increase.
“In the wake of widespread spring flooding, heavy rains and high water levels now threaten more of the same in communities across the country. And while floodwaters inevitably recede, the financial and emotional fallout will continue to make waves,” Wesseling said in a special piece with
The Globe and Mail.
Wesseling noted that insurers need to not only adapt to the reality that climate change has led to even more flooding, but also to help insureds adjust accordingly.
“In the past decade, insured losses from natural disasters, of which floods are the most common example, have more than doubled,” he explained. “In this new reality, our role as insurers continues to be put to the test and rightly so. Today, in the context of a rapidly changing climate, we have a much larger role to play. Insurers and all levels of government must do more to prepare Canadians for the new normal of risk in this country, while ensuring they are well-equipped to adapt to a changing climate.”
“[As insurers,] we are accountable. We challenge our industry to raise awareness of the issues, equip Canadians to adapt to flood risk and actively engage with all levels of government. Furthermore, we must innovate and adapt products to ensure all Canadians are eligible for insurance at prices that reflect the risk they are exposed to,” he stated.
Interestingly, Wesseling in his opinion piece also challenged municipalities to publicize flood maps to allow residents to properly make informed decisions, as well as to help restrict development in areas of high risk. The move to make flood maps public is a contested one, with those opposed to the decision reasoning that it could lead to significant increases in home prices and insurance costs, among other things.
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