Bureau of Insurance Canada responds to new GFIA report on global protection gaps

The report underscores the urgent need for governments to close the growing protection gap for natural disasters and cybercrime

TORONTO, March 14, 2023 /CNW/ — A new report released today by the Global Federation of Insurance Associations (GFIA) underscores the need for closer collaboration between governments and the private sector to address threats to well-being and economic prosperity tackle the Canadians through natural disasters. In this report, GFIA, which represents over 40 insurance associations worldwide and is based in Brussels, Belgium, highlights a number of policy recommendations and calls on all government agencies to create environments where climate and cyber risks can be managed and mitigated.

Bureau of Insurance of Canada / Bureau d’assurance du Canada – Logo (CNW Group / Bureau of Insurance of Canada)

“Today’s report is a global call for action for national and subnational governments to finally improve Canada’s severe weather and cyber event preparedness and resilience,” said Craig Stewart, vice president, climate change and federal affairs, Insurance Bureau of Canada (IBC). “Prudent policy action can ensure Canadian homes and businesses are better informed about and protected from these threats. Specifically for Canada, the soon-to-be-released federal budget includes an opportunity to fill a major protection gap in that country by announcing a national public-private partnership that will provide flood insurance to high-risk Canadians. The political work is complete. Now is the time to invest and implement.”

Building on the approach of other developed nations, Canadian insurers have submitted a proposal to the federal government to create a national flood insurance program. This program would ensure Canadians living in high-risk flood-risk areas have access to the enhanced financial protection that insurance provides and allow for a faster and more holistic recovery.

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In addition, IBC emphasizes the recommendations of GFIA to close the cyber risk protection gap, including creating incentives and supporting the prevention of cyber attacks, conducting awareness campaigns, developing frameworks for incident reporting and the Promotion of adaptation measures. GFIA estimates that there is a $900 billion cybersecurity gap globally, with the economic impact of cyber incidents being at least $1 trillion. The GFIA report used IBC’s Cyber ​​Savvy campaign as an example of how public and private stakeholders can educate the public, particularly small and medium-sized businesses, about cyber threats and the importance of cyber insurance.

The story goes on

In the natural catastrophe section of its report, GFIA recommends action to close the protection gap – the difference between comprehensive financial protection and actual insurance coverage – for natural catastrophes through the implementation of prevention and adaptation measures, such as: B. improved land-use planning and building codes, and incentives to relocate or rebuild outside of high-risk areas.

In addition, GFIA recommends that policy levers include government-backed insurance programs, public-private partnerships, mandatory contributions to natural disaster funds, or pooling solutions to reduce the financial burden on governments and accelerate economic recovery from these events, for example through an increase taking out insurance.

As announced by IBC earlier this year, insured losses from extreme weather and natural catastrophes exceeded $3.1 billion in 2022 – the third-worst year on record in Canada’s history. Average annual insured losses from natural catastrophes have increased by 164% over the past decade – from $959 million between 2003 and 2012 to $2.53 billion between 2013 and 2022. In addition, payments budgeted by the federal government to provinces for post-disaster reconstruction aid has increased an alarming 466%, from US$305 million in 2004-2005 to almost US$1.73 billion in 2023-2024.

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Through the Insurance Bureau of Canada

The Insurance Bureau of Canada is the national trade association representing Canada’s personal home, auto and commercial insurers. Its member firms make up the vast majority of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to make affordable home, auto and business insurance available to all Canadians. IBC supports the vision of consumers and governments to trust, value and support the P&C personal insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.

For media releases and more information, visit the IBC Media Center at www.ibc.ca. Follow us on Twitter @InsuranceBureau and like us on Facebook. If you have a question about home, auto, or business insurance, contact the IBC Consumer Information Center at 1-844-2ask-IBC.

About the Global Federation of Insurance Associations

GFIA is a not-for-profit association formed to represent national and regional insurance associations serving the common interests of life, health, general insurance and reinsurance companies worldwide. Founded in Washington, DC in 2012, GFIA consists of 40 member associations and represents the interests of insurers and reinsurers in 67 countries. These companies account for almost 90% of all insurance premiums worldwide. GFIA is incorporated in Switzerland and its secretariat is based in Brussels.

SOURCE Insurance Bureau of Canada


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