Intact Financial Corp., formerly ING Canada, has moved away from the industry pack in addressing climate change, The Globe and Mail reports. The company launched both one new climate risk product, and a research institution to study the wider subject.
Severe storms cost Canadian insurers $1-billion a year in damage claim payouts. The international Financial Stability Board, led by former Bank of Canada (now Bank of England) governor Mark Carney, has urged G20 countries to clarify their financial risk from physical damage as a result of climate change, insurers’ liability, and the effects of transitioning to a low-carbon economy.
Intact will initially offer property damage insurance against climate change related “overland flooding” – although not to those most at risk. The company is also endowing a new Intact Centre for Climate Adaptation with $4.25 million over five years to research weather-related risk reduction strategies for homeowners and companies in the mining, energy, utility, and telecommunication.
“Given that we are on the front line,” Intact CEO Charles Brindamour said, “We need to create a sense of urgency around adaptation, and not just mitigation.”
