Canadian insurers are concerned at the country’s lack of flood insurance but are split over the viability of getting involved.

Inadequate mapping is hindering risk assessment, according to a study by the University of Waterloo in Ontario.

Canada is the only G8 country where overland flood insurance is not available to homeowners in any form, despite frequent widespread damage.

Since 1900 there have been 289 flood disasters – more than the next three major event types combined – and damage events may increase with climate change.

“Most insurers agreed that existing flood maps are inaccurate, outdated and inadequate for insurance purposes,” the report says.

“This data gap poses a clear threat to the viability of flood insurance. But it also suggests that both opponents and proponents are making assumptions about viability without a clear understanding of flood risk exposure.”

Australia’s recent experience could provide the template for mapping a large region, the report says.

Other insurer concerns include lack of demand in safer areas, inadequate mitigation incentives and reputation risk from high premiums in at-risk areas.

The study, funded by insurer The Co-operators, questioned executives from companies that wrote 57% of Canadian property premiums as of 2011.

The report recommends the Government, insurers, brokers, banks, investors, developers and homeowners hold talks on improving flood and disaster risk management.

It calls for research on flood risk exposure, with a priority on high-density population areas.