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Canada Considering Flood Insurance Program

Federal government officials in Canada are thinking about creating a government-backed flood insurance system.
Canada Considering Flood Insurance Program
June 12, 2018

Federal government officials in Canada are thinking about creating a government-backed flood insurance system. The federal government has asked the Insurance Bureau of Canada (IBC), a carrier group, to lead a working group that will deliver recommendations by November on insuring Canadian homes that have a high risk of flood.

The working group will decide whether to recommend that Canada implement a system like Flood Re, launched in the United Kingdom in 2016. Flood Re is a reinsurer which is subsidized by a tax imposed on all carriers writing home insurance in Britain. This means a majority of Britons subsidize high-risk property owners.

A Public Safety Canada spokesperson did not directly address whether the federal government has ruled out introducing a system similar to the United States’ National Flood Insurance Program (NFIP).

READ: CoreLogic 2018 Storm Surge Report Finds More Than $1 Trillion At Risk

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