The Ontario Broker - Volume 21, Issue 5 - 8

INDUSTRY & MARKETS
BUSINESS RISKS AND OPPORTUNITIES
OF CLIMATE CHANGE
With Dr. Gordon McBean-Research Chair, Institute for Catastrophic Loss Reduction
T
his summer the UN's Intergovernmental Panel on Climate
Change (IPCC) released a report detailing the current severity
of our warming climate. The UN Secretary General stated that it
was a " code red for humanity. "
The Institute for Catastrophic Loss Reduction (ICLR) is a not-for-profit
research institute founded by the insurance industry and affiliated with
Western University that produces disaster prevention research
and communications. The National Issues Report,
Canada in a Changing Climate: Advancing our
Knowledge for Action, with contributions
from ICLR, provides a Canadian
perspective on how climate change
is affecting our communities,
environment and economy and
what can be done about it.
ICLR's chapter in this timely
report, Climate Disclosure,
Litigation and Finance,
examines how the risks
and opportunities
presented by climate
change are a crucial
issue for business.
" There is clear evidence
of a climate change
adaptation deficit in
Canada-as demonstrated
by recent impacts of extreme
weather events such as floods
and wildfires-and nearly every
economic sector in Canada is
impacted, " said Dr. Gordon McBean,
Member of the Order of Canada and
one of the chapter's co-authors.
" From the insurance industry perspective, there are
several important findings. Climate change is and will impose
increasing economic costs on Canada as losses from severe weather
events are significant and rising. Adaptation actions are important
with each dollar invested generating, on average, five to six dollars in
benefits. "
The report states that since the eighties, climate-related damage claims
paid by Canada's insurers have doubled every five to ten years. The
insurance industry can lobby the government to try to move faster
on these issues, but in the meantime, these effects are being felt by
communities across the country. In another report co-authored by Dr.
McBean earlier this year-Building Climate Resilient Communities-they
highlight the importance of not just moving forward, but doing so in
such a way that benefits all Canadians:
Equity, diversity and inclusion are essential principles
for climate, health and all authorities as they
work with partners to address climate
change in a manner that brings benefits
to all segments of the population.
" It's vital for Canada's economic
and social well-being that
progress on adaptation be
accelerated through rapid
and deliberate plans and
actions, " said Dr. McBean.
While government action is
ultimately what's required,
businesses should try
to make a difference in
whatever ways they can.
The insurance industry
co-founding the ICLR to
produce research like this
was an important step, but
there are things we can also do as
individuals. In an effort to mitigate
personal losses from climate events,
ICLR publishes booklets with information
homeowners can use to prepare their homes
for these unfortunately predictable disasters,
including advice like installing backwater valves and sump
pumps to prevent or reduce flood damage. Brokers are encouraged
to share information with their clients so they can protect them from
losses before they happen. As the ICLR report tells us clearly: climate
change is here, it's costing us and we have to adapt.
8
THE ONTARIO BROKER
The Ontario Broker - Volume 21, Issue 5

Table of Contents for the Digital Edition of The Ontario Broker - Volume 21, Issue 5
