The Insurance Bureau of Canada is encouraged by the funding for flood mitigation projects from the federal government, citing 2013 as a record-breaking year for insured damage.
Public Safety Minister Steven Blaney recently announced changes to the Disaster Financial Assistance Arrangements (DFAA) and Canada's National Disaster Mitigation Strategy, changes that include making $200 million available for flood mitigation projects.
“We welcome that this funding is now eligible for flood mitigation initiatives in Canada,” said Don Forgeron, president and CEO of the IBC. “We have seen how the world has changed in recent years and understand how severe weather events are hurting Canadian families. We also believe it is vitally important that the government work toward mitigating risks of earthquake in Canada. Our industry’s goal is to build a more resilient country.”
In 2014, insurers paid nearly $1 billion to policyholders for claims as a result of severe weather, according to Property Claim Services Canada (PCS-Canada).
“Prior to 2009, payouts to policyholders as a result of severe weather were not notable. Today, however, annual claims payouts of $1 billion or more is the new normal,” said Forgeron. “In fact in 2013, which was a record-breaking year for insured damage as a result of serious weather events, insurers paid out $3.2 billion to policyholders. In that same year, insured losses for severe weather across North America hit US$19 billion, the highest of any region in the world.”
It was as recent as November 2014 that heavy rains and high winds swept through Ontario and Quebec, causing more than $90 million in insured damage.
“Severe weather causes significant damage to Ontario communities far too often,” said Ralph Palumbo, vice-president, Ontario, IBC. “In 2014, weather-related insured damage in Ontario hit $200 million; that includes claims from the Burlington floods and the tornado in Angus.”
