Home insurance prices in Canada continue to face climate change pressures

Home insurance prices in Canada continue to face climate change pressures | Insurance Business Canada

Property

Home insurance prices in Canada continue to face climate change pressures

Affordability issue to further impact take-up

Property

By
Terry Gangcuangco

“There are going to be fewer and fewer people that can actually afford insurance.”

Those were the words of Lisa Guglietti (pictured), executive vice president of property and casualty insurance and chief operating officer at Co-operators, during an interview with Yahoo Finance Canada on the issue of home insurance affordability amid increased risks due to climate change.

Wildfires, in particular, are being cited as culprits in driving up costs for home insurance policyholders.

“As we see the number of wildfires increase, from an insurance perspective, that finds its way into everyone’s premium in some way because of the spreading of risk,” Guglietti was quoted as saying. “Insurance is just a pooling mechanism at the end of the day.”

For Co-operators’ part, it is keen to help insureds mitigate risks and enhance climate resilience at no additional cost.

Earlier this month, Co-operators rolled out a new value-added endorsement called “TomorrowStrong,” which aligns with the company’s commitment to community resilience.

Depending on certain conditions, policyholders can receive reimbursement of up to $3,000 for resilient roofing upgrades, $1,500 for hurricane straps, and $1,000 for prevention following a loss.

“Climate change is causing increased severity and frequency of extreme weather, and it’s unreasonable to expect our clients or communities to face these threats alone. We need urgency and innovation to meet this challenge head-on because we’re past the point of just implementing mitigation or adaptation – the two are now inextricably linked.”

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