insurance industry

Why educating clients on changing flood coverage is essential

Why educating clients on changing flood coverage is essential

As severe flash flooding and severe water damage become a rising risk in Canada, coverage and broker talking points are evolving to address the intensity and frequency of extreme weather. Spring thaw is creating opportunities for drainage backups and property damage due to yo-yoing temperatures and unpredictable precipitation. According to Jim Mandeville, senior vice president, large loss at First Onsite Property Restoration, “insurance policies are evolving with changing climate concerns, which is something brokers should emphasize to clients who may be vulnerable.” Mandeville has years of experience working in the disaster relief sector, being on the front lines of restoration and mitigation projects across North America including Hurricane Sandy, the Slave Lake wildfires of 2011 and the Fort McMurray flooding of 2013, to name a few.

B.C. floods will be Canada’s most expensive natural disaster this year

B.C. floods will be Canada’s most expensive natural disaster this year

The flooding in southern British Columbia will be the largest natural catastrophic disaster for the insurance industry in 2021, says Marcos Alvarez, DBRS Morningstar’s head of insurance. Insurance companies have not yet been able to provide estimates of what the total cost of damages for the B.C. flooding could tally up to, but Mr. Alvarez said in the past 10 years Canada has had several flood events across the country that each surpassed $1-billion in insurance claims. “Increases in average annual insured weather-related losses are higher in Canada than at the global level,” Mr. Alvarez said. “This is consistent with the notion that the warming of Canada’s climate is happening at about twice the rate of the global average.”