"Atmospheric rivers" in BC highlight urgency of national flood program

“Atmospheric rivers” in BC highlight urgency of national flood program – IBC | Insurance Business Canada

Catastrophe & Flood

“Atmospheric rivers” in BC highlight urgency of national flood program – IBC

The program will provide “financial protection and peace of mind”

Catastrophe & Flood

By
Mika Pangilinan

Severe flood events that hit British Columbia in recent years have underscored the urgent need for enhanced protection against rising flood risks, according to the Insurance Bureau of Canada (IBC).

The “atmospheric river” flood disaster in 2021 wreaked havoc on personal property and critical infrastructure, causing $696 million in insured damage.

Looking back on these events, IBC’s Greg Moy argued that it was crucial to rally support for the national flood insurance program promised by the federal government in its 2023 budget.

According to Moy, who serves as manager of government relations for the Pacific region, the increasing frequency and severity of such climate-induced disasters adds pressure to governments already struggling to balance spending decisions against the need to fund the Disaster Financial Assistance Arrangements (DFAA) program.

“If adopted, this program would provide those living in high-risk areas with financial protection and peace of mind when disaster strikes,” he said in an article published on IBC’s website.

“Canada’s property and casualty insurance industry has strongly advocated for this public-private insurance program, and it has never been closer to becoming a reality than now.”

The BC government has made commendable steps with its implementation of the Climate Preparedness and Adaptation Strategy and the development of the BC Flood Strategy, according to Moy. However, these initiatives do not fully address gaps in financial protection for those in high-risk areas without affordable insurance options.

“This is where the national flood insurance program could help, providing financial resilience to the 10% of Canadians who cannot access private sector flood insurance products,” said Moy.

“In terms of additional costs, a national flood insurance program could also help offset the cost of DFAA for both the federal and provincial governments.”

What are your thoughts on this story? Feel free to comment below.