The introduction of a climate risk score that would identify a property’s vulnerability to harm from natural disasters is being demanded by the Insurance Bureau of Canada.
The IBC says disclosure of natural hazard and climate risk is needed because of the increasing frequency and severity of extreme weather events, such as hurricane Fiona.
A nationwide committee of members from Canada’s housing supply chain were asked to establish a framework to explain these risks to homeowners in 2021, and they produced the report that was made public on Tuesday as a result.
According to Craig Stewart, vice president of the IBC, Canada must create a global system for disclosing climate risks by 2025.
The research also suggests creating a risk action matrix for lenders and insurers and updating flood maps.
Homeowners, contractors, financial institutions, and the government will be able to invest in resilience and adaptation projects, according to Stewart, if they have access to credible climate-related data.
Should residences in Canada receive climate risk ratings? The insurance sector says yes
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