IBC praises Conservative Party’s climate plan

The Insurance Bureau of Canada (IBC) has responded favourably to the climate plan proposed by the Conservative Party of Canada, which addresses both carbon emissions and adaptation.

The climate plan – entitled “Secure the Environment: The Conservative Plan to Combat Climate Change” – was unveiled by Conservative leader Erin O’Toole last Thursday. One of the most notable points of the plan was a proposal to replace the Liberal government’s current carbon pricing scheme with a loyalty card-like approach. This so-called “personal low carbon savings account” will make consumers pay a carbon levy on fuel, which will then be stored into an account that can be used for green purchases.

Carbon fees aside, the IBC praised other details of the Conservative’s climate plan. In particular, the bureau was pleased to see commitments to the following:

• Address the lack of political attention on disaster resilience and learning lessons from the pandemic by appointing a national disaster resilience advisor to the Privy Council Office.
• Devise and implement a national climate adaptation strategy that:
  • Is based on measurable targets
  • Addresses existing provincial concerns about flood readiness while leveraging private sector solutions to reduce government exposure and spending
  • Addresses wildfire and drought exposure in collaboration with farmers, ranchers and foresters
  • Establish a residential high-risk flood insurance program to ensure all Canadians are financially protected while avoiding future government bailouts.
• Incorporates a mitigation and adaptation lens into the government’s infrastructure investments
• Harnesses the power of nature to increase resilience by working with provinces and territories to develop a natural infrastructure plan.

“For all the attention being paid to emissions reduction, not enough effort has been made to address the losses Canadians are experiencing today from flooding, wildfires, wind and hailstorms,” said IBC vice president of federal affairs Craig Stewart. “Last year alone, insurers paid out over $2.4 billion in property claims, and taxpayers shouldered far more. This climate plan strives to address that gap and, if implemented, would make Canadians and their communities safer and more financially resilient.”

According to the IBC, Canadian insurers spent an average of $2 billion annually between 2009 and 2020 on losses related to natural catastrophic events (classified as events resulting in insured losses of $25 million or more). By comparison, insurers paid an average of only $422 million per year from 1983 to 2008.