IBC Correct to Push for Stricter Zoning Laws Agrees Shop Insurance Canada

September 17, 2016 (PRLEAP.COM) Business News
September 17, 2016 - The devastating wildfire in Fort McMurray, Alta. has led to many advocating a rethinking of how Canada prepares for climate events. The wildfire became the largest insurance loss in Canadian history. Worryingly is that it was in Alberta, home to the second largest loss in Canada. Now the Insurance Bureau of Canada is advocating building codes and zoning laws to protect properties and stop development in at-risk regions.

Shop Insurance Canada says the insurance industry will continue to be hit and lose billions of dollars each year as the climate worsens.

"It is not just that the climate is getting worse," says the insurance expert. "Developments are still taking place in regions where high impact weather events are likely. Tighter zoning controls would at least begin to help protect consumers' property and save the insurance industry from devastating losses. Fort McMurray has had a hugely negative impact on the insurance industry, with all carriers posting troubling second quarter financials as a result."

IBC Pushes for Stricter Zoning Laws
"There is no question that Alberta has seen a disproportionate number of significant events over the course of the last number of years," Bill Adams, vice president western and Pacific for IBC, said July 7 during a press conference.

"I will leave it to the meteorologists and climatologists and others who have a much better appreciation and understanding of all the dynamics that lead to that, but ultimately what we are seeing is that our climate is changing and the long term trends are directly the result of some of those dynamics, so what we are advocating as an industry is that we need to think through an approach that recognizes that the environment in which we are providing coverage for risks is changing and has changed."

The IBC spoke during a press conference on July 7 and said the most recent estimates for the Fort McMurray insurance loss were around $3.58 billion, provided by Catastrophe Indices and Quantification Inc.

"Our thinking as a society needs to change to make certain we are reflecting in building codes and as we develop urban and rural municipalities, we are doing so in a prudent way, and keeping people out of harm's way," Adams said July 7 during the press conference on the Fort McMurray wildfire. "Historically, we have not done that well in Canada and perhaps less so in Alberta and unfortunately, we are living with the consequences now. But we have a number of proposals that would reframe the risk profile and begin to reverse the trend of these significantly damaging events and the impact on Albertans."

Proceeding Fort McMurray was the 2013 floods that hit southern Alberta were the previous insurance loss record holder. That 2013 event resulted in a $1.7 billion loss for insurance companies off a total economic loss of around $6 billion.

What Do You Want To Know About Insurance
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.

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 insurance 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
1003-60 Bathrust St.
Toronto, Ontario
M5V 2P4
Canada
416-913-0151

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