OTTAWA,
ON, April 16, 2024 /CNW/ - In today's
federal budget, the government took another step forward to partner
with the country's property and casualty (P&C) insurers to
continue developing Canada's first
low-cost national flood insurance program for households at
high-risk of flooding. In response, Celyeste Power, President and
CEO, Insurance Bureau of Canada
(IBC), issued the following statement:
"Today's commitment by the federal government will help ensure
that over 1.5 million homeowners at high risk of flooding will have
access to affordable insurance through the National Flood Insurance
Program when it's launched next year.
This is the single most important step Canada can take to better protect homeowners
across the country from the financial risks of climate change that
they are already facing.
Our industry is ready to support the government in the
operationalization of this critical program. We have been working
in concert with federal and provincial governments over the past
seven years to design a program that suits Canada's particular geography and housing
market. Canada's P&C insurance
industry and the federal government have already begun working to
rapidly scale and start delivering the program in 2025. However,
the needed conversations between federal and provincial governments
have yet to take place. Without the required federal and provincial
funding arrangement, Canadians at the highest risk of flooding will
not be adequately protected.
The new program would provide financial protection to high-risk
households, while reducing disaster costs to federal and provincial
government treasuries. Rather than responding with disaster
financial assistance in the aftermath of catastrophes, this program
would be a proactive, cost-effective approach to managing the
financial toll when disasters strike. Program eligibility
requirements should discourage further building in floodplains
while incenting protection for those who already live in them – a
critical requirement absent from the just announced federal housing
plan to build 3.87 million new homes.
We look forward to continuing to work in partnership with the
Canada Mortgage and Housing Corporation, Public Safety Canada and
Finance Canada to deliver on our joint vision that, as of 2025,
households across the country will have access to flood insurance
seamlessly through their existing home insurance policy, offered by
the same brokers or agents homeowners rely on today.
IBC and its members are eager to continue partnering with the
federal, provincial and territorial governments to establish the
country's first low-cost national flood insurance program to
protect high-risk households for the 2025 flood season and
onwards."
About Insurance Bureau of
Canada
Established in 1964, Insurance Bureau of Canada (IBC) is the national industry
association representing Canada's
private home, auto and business insurers. Its member companies make
up the vast majority of Canada's
highly competitive property and casualty (P&C) insurance
market.
As the leading advocate for Canada's private P&C insurers, IBC
collaborates with governments, regulators and stakeholders to
support a competitive environment for the P&C insurance
industry to continue to help protect Canadians from the risks of
today and tomorrow.
IBC believes that Canadians value and deserve a responsive and
resilient private P&C insurance industry that provides
insurance solutions to both individuals and businesses.
For media releases, IN Focus articles, or to book an interview
with an IBC representative, visit ibc.ca. Follow us on LinkedIn, X
and Instagram, and like us on Facebook. If you have a question
about home, auto or business insurance, contact IBC's Consumer
Information Centre at 1-844-2ask-IBC. We're here to help.
SOURCE Insurance Bureau of Canada