Emerging trends and future pathways: A commentary on the present state and future of residential flood insurance in Canada. Issue 4 (2nd October 2017)

• Record Type: Journal Article
• Authors: Calamai, Lapo; Minano, Andrea
• Is Part Of: Canadian water resources journal =. Volume 42:Issue 4(2017)
• Page Start: 307
• Page End: 314
• Publication Date: 2017-10-02
• Subjects: Water resources development -- Canada -- Periodicals; Water conservation -- Canada -- Periodicals; 333.9100971
• DOI: 10.1080/07011784.2017.1362358
• Languages: English
• ISSNs: 0701-1784

Abstract

Abstract : Until 2015, Canada was the only G7 country where homeowners could not purchase flood insurance. Historically, when a natural disaster occurred, the federal, provincial and municipal governments were primarily responsible for compensating homeowners and rebuilding communities to pre-disaster conditions. The rising costs of extreme weather, particularly from flooding, within the last decade have placed an unexpected burden on taxpayer-funded disaster relief programs. In recent years, the insurance industry has been placed under a spotlight as a potential resource for managing the costs of flooding and as a mechanism for shifting this financial liability away from governments. This commentary: (1) outlines the conditions needed to achieve a sound flood risk management culture, and progress made in relation to these conditions; (2) identifies the current state of residential flood insurance and the challenges facing the property and casualty insurance industry; and (3) proposes changes in public policy that are needed in order to disaster-proof Canada's economy.