Industry Outlook > IBC's position on climate change

IBC's position on climate change

posted on June 15, 2016
By the RCCAQ
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Over the past few years, it has become clear that the climate is changing. Storms are getting stronger and stronger. The seasonal patterns we were used to have been thrown off: temperatures now vary significantly from one day to the next, and sometimes within the same 24-hour period!

More and more people are saying that these new phenomena stem from lax environmental protection measures and that we need to make radical decisions, namely to limit greenhouse gas emissions.

The organizations calling for a review of our current practices now include the Insurance Bureau of Canada (IBC). In a speech to the Economic Club of Canada in Ottawa on May 18, IBC president and CEO Don Forgeron clearly explained why he believes society should reconsider the new climate era we have entered into.

The IBC's position in this regard is cut and dried: the organization is calling on the various levels of government to manage these issues more actively, including related risks, not only to reduce the enormous costs of these catastrophes, but also to better manage the human factor.

The figures speak for themselves: the federal government earmarked $54 million per year on average (dollars adjusted from 2014) between 1970 and 1994 to natural disasters. These costs are expected to climb to $900 million annually over the next five years, according to the Parliamentary Budget Officer.

In Mr. Forgeron's view, to manage these future events, we need a collective response— a framework enabling us to build a more resilient country and to help the people affected. IBC hopes to be part of the solution.

In support of his position, Mr. Forgeron cited the Sendai Declaration adopted in 2015 during the Third UN World Conference on Disaster Risk Reduction. Canada is a signatory to this Declaration, which includes seven objectives, four of which were mentioned by Mr. Forgeron in his speech. Here are some excerpts:
1. Better identify and truly understand the risks we face.
"When it comes to floods, that means investing in accurate, up-to-date hazard mapping. I’m proud to say the insurance industry has taken the lead on this. IBC has been working with a global leader in flood mapping to develop a Canada-wide model that uses the best local climate and geospatial data available."
2. Strengthen governance to better manage risk.
"This means limiting or ending the practice of building in areas deemed high risk by flood mapping. (…) The solution is to work in partnership with federal and provincial governments to create a residential flood insurance program tailored to these properties."
3. Increase our resilience to flood and fire.
"That means a change in land-use policy. And it means an ongoing focus on building codes. (…) For example, there are communities in northern Alberta that have passed bylaws to ensure that all buildings have a roof that’s fire resistant, and every home has a zone of protection around it. None of this guarantees a community is immune from fire. But it does offer an element of protection and reduces some of the risk."
4. Create a culture of emergency management.
"We need to enhance our ability to respond effectively–and to build back better and smarter–in the aftermath of a disaster."
Mr. Forgeron concluded by noting that the industry should support government efforts at all levels to reduce greenhouse gases. By taking action now on the four strategies set out in the Sendai Declaration, we can minimize the costs for taxpayers and better equip the population to face the risks and issues of tomorrow.