Canada’s peak insurance body has welcomed a strategy to shield the country from looming climate change events which cost the country more than $C2billion ($2.28 billion) a year. 

The Canadian Government’s first National Adaptation Strategy and Action Plan seeks to reduce risk and build climate resilient communities amid record-breaking climate events, including wildfires, extreme heatwaves, and floods. 

Thhe wide-ranging mitigation measures, developed over the past two years, include planting “urban forests” to cool cities, tighter construction guidelines for flooding and wildfire, and projects that help meet zero emission targets. 

It says for every dollar spent on mitigation up to $C15 ($17) is saved. 

Insurance Bureau of Canada (IBC) CEO and President Celyeste Power said it was a significant step toward improving Canada’s climate defence. 

“We urge the Federal Government to make the necessary investments to implement this strategy,” she said. 

“The 2023 wildfire season serves as yet another stark reminder of the increasing financial vulnerability many Canadians face due to natural catastrophes and the urgency with which we must move forward in the implementation of the National Adaptation Strategy.”  

Ms Power says the 2022 insurance payout of $C3.1 billion ($3.53billion) was the third-worst year on record. Between 2001 and 2010 the average annual payout for losses was $C675million ($769million). 

“The time to act is now,” Ms Power said. “IBC is continuing to closely collaborate with the federal government, provinces, and territories to establish the country’s first national flood insurance program within the next 24 months.” 

Flooding is seen as Canada’s greatest climate-related risk with more than 1.5 million households highly exposed to flooding.  

The $C98.2 million ($111 million) investment in the National Flood Insurance Program is expected to help speed recovery and rebuilding for displaced families and businesses in flooded communities and reduce unplanned disasters. 

The Canadian Government has so far invested $10 billion ($11.4billion) in adaptation, disaster resilience and disaster response measures.