Shop Insurance Canada Says Edmonton Flood Maps Should be Praised

November 24, 2016 (PRLEAP.COM) Business News
November 24, 2016 - Edmonton took an innovative first step this week when it became the first city in Canada to publish flood maps. The preliminary map shows neighborhoods in the city most at risk from flooding, making it available to residents. While some have worried about the impact on insurance companies, the Insurance Bureau of Canada (IBC) says there should be no concerns.

Moreover, industry expert Shop Insurance Canada points out that this is a necessary step if Canada is to eventually have a robust flood protection solution in place.

"Shop Insurance Canada has often lamented the lack of flood coverage in Canada. Like insurance companies, we believe the government must help to create a protection network for insurance providers to build off. Flood maps make it easier for homeowners to understand their situation and eventually how much insurance protection they need. There are risks for providers, but consumers need to be put first in what is a changing industry."

While the release is positive, it was also necessary after Postmedia won a freedom of information request in October. Edmonton was already on course to release the maps, however, but not until 2017. Residents can use the maps to have information about non-riverine flooding patterns within the city. This was thought to be impactful for insurance providers.

Canada lacks a concise flood insurance model. Some companies have started expanding policies to include overland flooding, but an overall system is not in place. Many insurers have called on the government to implement a national model. With published flood maps, customers can have an idea if their property is at risk and how it should be insured.

The Insurance Bureau of Canada says that insurance companies should not be worried by this development.

"We support the move to release the flood maps as they will allow residents to understand their risk and consider mitigation efforts they can undertake in addition to those being considered by the City of Edmonton," Bill Adams, Vice-President, Western and Pacific, Insurance Bureau of Canada said yesterday.

Craig Stewart, vice-president at the IBC, said that Edmonton's maps had not been shared with insurance companies, so calculating accurate risk was hard. Some customers could face higher premiums due to the location of their properties.

"The more data is available, the better we are able to access risk," Stewart said at the time.

"Insurers have had access to their own flood mapping technology for years," he said in an email, adding, "flood risk is generally already considered when determining premiums."

"Since insurers have had access to these maps for years, the industry should not be affected. Providing flood mapping information to residents allows them to participate in the effort to mitigate risk," he said.

About Shop Insurance Canada
Shop Insurance Canada is a Toronto based company that specializes in delivering the best auto insurance products to customers around Ontario and Canada. The online quoting tool uses an engine that is easy to use and accurate enough to deliver the best auto insurance quotes from over 25 of Canada's leading providers. Shop Insurance Canada also offers expert advice on the auto insurance industry, as well as guides and news to help customers find the best deal possible.

Shop Insurance Canada works hard to bring all the latest insurance news to customers. We believe that understanding the industry starts with knowing what is happening day to day. Our customers and readers are hugely important to us, and we want them to get the best deals by being involved in the industry. If you have any interesting insurance topics or stories, let us know and we will be happy to look into it and write it up.

Perhaps you have a funny story about your premium evaluations, or maybe a genuine worry about the state of insurance in Canada. Shop Insurance Canada wants your voice and story to be heard, so get in touch with us via our official contact page.

Shop Insurance Canada
1003-60 Bathrust St.
Toronto, ON
M5V 2P4
Canada
416-913-0151 |

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