Insurance rates are sharply rising as extreme weather events increase due to climate change. Investors for Paris Compliance advocates for transparency from Ontario's financial services regulator regarding these rising costs. Floods and wildfires are driving rates upward, leading to an affordability crisis. Insured losses from severe weather in 2024 surpassed $9 billion, significantly higher than previous years. The group has requested public disclosure of rate changes and updated climate risk data from the Financial Services Regulatory Authority of Ontario, which currently limits consumer access to flood risk mapping.
"There's been open-ended rate hikes, while at the same time there's been shrinking coverage due to the escalating costs of climate change," said Kiera Taylor, senior policy analyst at Investors for Paris Compliance.
Year over year, severe weather losses are rising at an alarming, exponential rate," he said in an email to CBC Toronto.
Investors for Paris Compliance has made a submission to the Financial Services Regulatory Authority of Ontario (FSRA) asking for more transparency, including considering public disclosure of rate changes as is done with auto insurance.
The advocacy group is also asking the FSRA to make climate risk data public, such as flood maps, which insurers use to price risk.
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