Toronto, ON (Sept. 1, 2017) – The CCIR committed to a review of natural catastrophes and personal property insurance as the frequency, severity, costs and attention paid to natural catastrophes have risen both across Canada and around the world. The objectives of the CCIR in this area were to assess and better understand the impact of natural catastrophes on insurance and insurance consumers in Canada, with particular attention being paid to the types of coverage and availability of insurance for natural catastrophes, the changes taking place in the insurance marketplace, and the effects the rise in natural catastrophes has had on consumer awareness of risks and coverages.
Following research and a review of property insurance policy wordings, the CCIR published for consultation its Issue Paper in July 2016. The Issues Paper reflected the CCIR’s preliminary understanding of the issues related to natural catastrophes and personal property insurance and was intended to initiate discussions among key stakeholders.
The topics the Issues Paper addressed directly include:
- Natural catastrophes risk models available to/utilized by the insurance industry;
- Approaches to risk sharing adopted in Canada
- Product development;
- Impact of climate change;
- Consumer complaints related to natural catastrophes;
- Regulatory and legislative framework governing insurance in this area;
- Coverages that are currently available in Canada;
- Consumer understanding of natural catastrophe related risks; and
- Consumer understanding of coverages and policies
Purpose of this Paper
The purpose of this paper is to present the results and findings of the consultation on the Issues Paper and to outline the positions and expectations of the CCIR as they relate to the issues regarding natural catastrophes and personal property insurance.
The Canadian Council of Insurance Regulators is an inter-jurisdictional national association of insurance regulators that traces its roots back to 1914. The mandate of the CCIR is to support an efficient and effective insurance regulatory system in Canada to serve the public interest. We work together to develop solutions to common regulatory issues.
Source: Canadian Council of Insurance Regulators (CCIR)CCIR, Natural Catastrophes, Personal Property Insurance