The insurance industry paid out $7 billion this year, more than 10 times the average of payouts in the early 2000s
OTTAWA — Emergency Preparedness Minister Harjit Sajjan says the federal government is looking at revamping its own disaster assistance programs and considering the creation of a national emergency management agency, following another year of costly disasters.
Sajjan spoke on Thursday at a Canadian Club of Ottawa luncheon. He said after a summer where wildfires destroyed a large part of Jasper, Alta., and burned as much land as the United Kingdom, the government knows things have to change.
“We are striving to create a more resilient and sustainable approach to emergency management that will help Canada prepare to mitigate, respond and to recover from disaster,” he said.
Sajjan was joined by Celyeste Power, president and CEO of the Insurance Bureau of Canada, who said 2024 is setting another ominous record for the industry.
“In the span of four weeks, we saw four natural catastrophes — major floods, a catastrophic wildfire and a destructive hailstorm — and a quarter million insurance claims, 50 per cent more than insurers typically get in an entire year,” she said.
Added up, Power said industry paid out $7 billion this year, more than 10 times the average of payouts in the early 2000s. She said it is becoming the new normal in a way that is unsustainable.
“It’s not bad luck. It is part of a clear and rapidly escalating trend,” she said.
Power pointed to several U.S. states where insurance coverage has either become prohibitively expensive or non-existent because of severe wildfires or hurricanes. She said Canada needs to take steps to avoid that happening here.
“We do not want to see that happen here in Canada, but there’s an issue,” she said. “Even as we see more severe weather events and disasters, we have noticed that the adaptation and resilience, adapting to climate change and building resilient communities, has been dragging.”
The government has a disaster assistance program that makes large payments to provinces after a major disaster. The program is up for renewal next year. Saijan said they are looking at ways to ensure it delivers funding more quickly and also to ensure it will build communities back in a more resilient fashion.
“We know that we need to ensure that, in the face of climate change, the Disaster Financial Assistance Arrangements are fit for purpose and assistance can be delivered quickly and efficiently in the aftermath of the disaster,” he said.
Power also asked Sajjan about the possibility of a national disaster response agency, similar to FEMA in the United States. She pointed out that Canada is the only G7 country without such an agency.
Sajjan said they are seriously considering the idea, but in Canada there are dedicated teams in provinces and municipalities already and so he has to find the right balance and the right structure.
“I can easily build up a federal response, but it might take away from the provincial resources,” he said. “Anything that we talk about, what we’re going to do at the national level has to be in co-operation with provinces and territories.”
The minister said they’re still consulting on the idea, but recognize there are a growing number of disasters.
“I have my own thoughts and ideas yet, but I want to make sure we get the right expertise to really think this through.”
Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our politics newsletter, First Reading, here.