The mountain of rising insurance payouts due to severe weather is being taken seriously by governments, as shown by Ontario’s discussion paper on climate change.
Glen Murray, Ontario's Minister of the Environment and Climate Change, released a discussion paper on climate change, and it is a step in the right direction to open a dialogue on how to deal with severe weather events, says Don Forgeron, president and CEO of the Insurance Bureau of Canada.
“IBC welcomes the Ontario government's Climate Change Discussion Paper. We have seen first-hand in recent years that severe weather events are taking their toll on Canadians, governments and industries,” says Forgeron. “This discussion paper explores effectively the impact of our ever-changing climate. We congratulate the government for its demonstrated commitment to help build resilient and sustainable communities across the province.”
Prior to 2009, insurance payouts to policyholders as a result of severe weather were not notable. Today, however, annual claims payouts of $1 billion or more have become the new normal. In fact, in 2013, insurers paid out a record high of $3.2 billion to policyholders following the devastating Ontario and Alberta floods.
“We look forward to working with the Ontario government to help build more resilient and sustainable communities across the province,” said Forgeron. “This discussion paper is an important contribution to those deliberations.”
In addition to working with governments, IBC continues to raise awareness with Canadians on ways they can adapt to the changing climate to keep their families safe and their properties secure.