February 12, 2019
Smart Prosperity in collaboration with the Insurance Bureau of Canada, and the Co-operators Group Limited, is pleased to provide this submission in response to the call from the Expert Panel on Sustainable Finance.
The frequency and severity of weather-related catastrophic events and associated insurance claims have risen significantly in the last decade, with projections pointing to a continued escalation as global average temperature continue to rise with climate change. Increasing demand for insurance will only be met if the Canadian (and global) insurance market has the capacity to underwrite these new risks. Identification and mitigation of local climate risks are essential to ensure local markets remain insurable.
This submission responds to four specific areas cited in the interim report, with specific policy recommendation identified in each section: