The federal budget offered the promise of a carrot to the insurance industry, stating it will begin the process of addressing the country’s exposure to natural disasters through a national mitigation strategy.
Finance Minister Jim Flaherty spoke of the potential for a residential flood insurance program and Canada's preparation for an earthquake. In addition, Flaherty said the government will look at “insurance issues arising from natural disasters more generally.”
Don Forgeron, President and CEO,
Insurance Bureau of Canada, says it is a good first step that the government is committed to discussing issues associated with natural disaster adaptation.
“As the insurance industry, we are concerned with adaptation issues and have invested extensively in helping Canadians,” says Forgeron. “We want governments at all levels, the private sector, citizens and community groups to continue to come together on these critical files.”
It was a record year for insured damages in 2013 and the government is already providing support to the many communities affected by recent natural disasters, says Forgeron, and is committed to working with other levels of government to build safer and more resilient communities.
Concurrent with these efforts, Ottawa is updating its earthquake monitoring system.
See also:
Tax dollars for catastrophes could be premiums for insurers
