Task Force on Flood Insurance and Relocation

Background

Natural disasters are increasing in frequency and severity. In light of the growing threat to the safety of Canadians due to climate change and continued development in high-risk flood areas, the Government of Canada is moving forward with a number of measures to help Canadians reduce their financial and physical vulnerability to flooding.

This includes a commitment to create a new, low-cost national flood insurance program to protect homeowners at high risk of flooding and without adequate insurance protection, and the development of a national action plan to assist homeowners with potential relocation for those at the highest risk of repeat flooding.

These undertakings are complex, and require a collaborative, multi-disciplinary approach involving federal, provincial and territorial government officials, the insurance industry and stakeholders and partners impacted or concerned by Canada’s growing vulnerability to flooding.

The Government of Canada created the Task Force on Flood Insurance and Relocation with the mandate to explore solutions for low-cost flood insurance for residents of high-risk areas and consider strategic relocation in areas at the highest risk of recurrent flooding. This interdisciplinary taskforce brought together experts from across the country in both the public and private sectors.

The Task Force’s report, Adapting to Rising Flood Risk: An Analysis of Insurance solutions for Canadians (August 2022), provides a common understanding of the evidence and information required to implement viable arrangements for a national approach to flood insurance, with special considerations for potential strategic relocation of those at most extreme risk. The report does not make a recommendation for a particular insurance model over another, as this is the purview of governments to decide. The report lays out the relative trade-offs of different kinds of arrangements, and undertakes a detailed analysis to support its findings.

The Government of Canada is reviewing the report to inform decision-making and next steps on the development of a national flood insurance program.

The Government of Canada is also committed to ensuring that Indigenous perspectives are included in flood risk management in Canada. In parallel with the Task Force on Flood Insurance and Relocation’s work, Indigenous Services Canada and the Assembly of First Nations launched the Steering Committee on First Nations Home Flood Insurance Needs to examine the specific home flood insurance needs of First Nations on reserves.

The Steering Committee was the first co-led emergency management initiative between ISC and the Assembly of First Nations. It included representatives from First Nations organizations such as the National Aboriginal Lands Managers Association (NALMA) and the First Nations Housing Professionals Association (FNHPA). Committee members also came from several federal government departments and agencies, Indigenous owned and conventional insurance firms, and academia.

Over the year, the committee engaged 71 First Nations across Canada, gathering key information and obtaining First Nations-specific context regarding home flood risk insurance. The final report (PDF Version, 5.14 MB, 42 pages) was presented at the final Steering Committee meeting on June 28, 2022. This work will inform future considerations and potential next steps related to flood insurance options on reserve.

The work to introduce a national flood insurance program in Canada reinforces the Government of Canada’s focus on advancing the country’s first National Adaptation Strategy and is a concrete example of Government’s commitment to address flood risk exposure. The National Adaptation Strategy will outline how the Canadian economy and society can be more resilient and prepared for the impacts of climate change.