Due to the increase in natural disasters, the Canadian insurance industry may have to consider raising premiums for consumers.
The bill for the Fort McMurray fires sparked conversation throughout the insurance industry, leading many to believe that severe weather is a top priority nationally. The trend of a warming atmosphere is taking a toll as we continue to see flooding and fires all around Canada.
Because insurance provides protection coverage to clients when disasters happen, the amounts paid out for these events have increased dramatically. With this in mind, insurers need to confirm they adequately rate for true exposure, and that they can increase premiums if a property is located in a high-risk zone.
Educating the public on the effect of environmental disasters is key to helping homeowners protect themselves and their property. They must know how to mitigate loss and reduce the risks they face where possible, as natural disasters become less of a future threat and more of a present danger.