Flooding Risks - Where The Canadian Insurance Market Is At

Extreme weather events, such as the heavy rainfall and flooding we've witnessed this spring in Quebec and in British Columbia, inevitably lead to discussions about the impact of climate change and the cost of inaction.

The recent flooding in various riverside regions of Canada that has left citizens feeling helpless as they try to salvage their home and belongings from murky waters of overflowing rivers across the country, is a reminder that governments and the insurance industry could do more to prepare for the future.

In Canada, flooding is among the most onerous risks for the federal government. Since the 1970s, it has paid nearly $6.5 billions to flood victims, i.e. about 78% of the expenses incurred under the Disaster Financial Assistance Arrangements (DFAA). What's more, in 2010-2014, it spent $3.7 billions in aid to flood victims.