Sourced from Insurance Business Magazine
To address the rising costs of flooding across Canada, the Insurance Bureau of Canada (IBC) has released a new report that calls for communities to consider smarter “green” infrastructure.
IBC collaborated with the Intact Centre on Climate Adaptation (Intact Centre) at the University of Waterloo, and the International Institute for Sustainable Development (IISD) to prepare its latest report, which looks into the implementation of natural infrastructure to mitigate flood costs.
According to the report, Canadian P&C insurance losses related to climate change and severe weather averaged $405 million per year between 1983 and 2008, and $1.8 billion between 2009 and 2017 – water damage was identified as the key driver behind the surge in costs.
The IBC then proposed that flood risk can be limited through the conservation and restoration of natural infrastructure – which refers to natural features such as ponds, wetlands and vegetated areas.
With a case study of existing natural infrastructures, IBC revealed how much insured damage the natural flood measures have saved: