![]() While increased exposure and vulnerability were the primary factors driving losses higher to date, the climate is expected to bring more volatility in the future in the short term, occasional extreme events and in the long-term, a dramatic increase in the frequency and severity of these events. These systems were designed to anticipate historic, moderate weather events, and smaller populations. At the same time, much of Canada’s infrastructure is increasingly vulnerable and unable to provide the high level of service experienced to date. ![]() The number of people who live, work and play in high and rising risk zones is expected to rise. Why is an increase in physical damage expected? Extensive ice-free conditions are projected for Canada’s Arctic Ocean.Ĭhange in the Canadian climate over the next 15 to 25 years is known with high certainty and will be driven largely by emissions released over the past century and by other decision that have been made by governments, businesses, and individuals.Ĭhange in the climate over the longer term, however, depends on emissions that will take place over the next 50 years and beyond.Ģ. Intense rainfall events are projected to increase in frequency and severity, and increased risk of wildfire ignitions and a longer fire season is expected to threaten more communities.Ĭoastal flood risk is projected to increase because of rising sea levels, which threaten costal infrastructure and buildings. Forecasts show the country will be warmer, with more extremely hot days. What change is expected in Canada’s climate?Ĭanada’s climate has already shifted, and experts predict significant further changes. In particular, the report explores six critical questions: 1. The report seeks to address the increases in physical, liability and transitional climate risks. Finally, leveraging reinsurance will help insurers reduce insolvency risk. They will also need to manage concentrations of exposure in a specific region and of a specific peril. Insurers will need to monitor the evidence about change in the frequency and severity of extreme events, combined with emerging knowledge about loss prevention best practices. The changes come with transitional risks that can take on many forms, including underwriting, operational, investment and regulatory risks. Society is transitioning to a low-carbon economy driven by market dynamics, technological innovation, policy action and shifting consumer preferences. While climate liability actions are expected to target major emitters – not insurance companies and brokers – insurance exposure is present through investment and coverage risk. Others seek compensation for the expense of investing in protection from future hazards. Some legal actions seek to recover the cost of damage resulting from extreme events. Legal actions over losses resulting from past greenhouse gas emissions, as well as climate action or inaction by governments and private organizations create liability risks. Young people and cities are suing for climate change accountability. People, History and Industry InvolvementĢ.
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