Flood: Costing our Failure to Adapt to the Times

Transcription

1 FCM Sustainable Communities Conference Flood: Costing our Failure to Adapt to the Times Thursday, February 11, 2016

2 Costing our Failure to Adapt to the Times Craig Stewart Vice President Federal Affairs Insurance Bureau Of Canada

3 Disaster Financial Assistance Arrangements $6.8 billion Disasters Costing our Failure to Adapt to the Times ibc.ca 3

4 DFAA Spending 1970s $40 million/year 1990s $100 million/year 2000s $600 million/year Costing our Failure to Adapt to the Times ibc.ca 4

5 Costing our Failure to Adapt to the Times ibc.ca 5

6 Craig Stewart Vice President Federal Affairs Insurance Bureau Of Canada Costing our Failure to Adapt to the Times ibc.ca 6

7 Costing our Failure to Adapt to the Times ibc.ca 7

8 Canada is the only G-7 country that doesn t have a national flood program Costing our Failure to Adapt to the Times ibc.ca 8

9 Costing our Failure to Adapt to the Times ibc.ca 9

10 2009 Claims 40% 29% 16% Water Fire Wind Costing our Failure to Adapt to the Times ibc.ca 10

11 Costing our Failure to Adapt to the Times ibc.ca 11

12 NATIONAL FLOOD PLAN Four Elements Costing our Failure to Adapt to the Times ibc.ca 12

13 NATIONAL FLOOD PLAN Four Elements Accurate, up-to-date national flood hazard mapping Costing our Failure to Adapt to the Times ibc.ca 13

14 NATIONAL FLOOD PLAN Four Elements Accurate, up-to-date national flood hazard mapping Ongoing, targeted investment Costing our Failure to Adapt to the Times ibc.ca 14

15 NATIONAL FLOOD PLAN Four Elements Accurate, up-to-date national flood hazard mapping Ongoing, targeted investment Government must be involved Costing our Failure to Adapt to the Times ibc.ca 15

16 Accurate, up-to-date national flood hazard mapping Ongoing, targeted investment Government must be involved Widespread risk awareness NATIONAL FLOOD PLAN Four Elements Costing our Failure to Adapt to the Times ibc.ca 16

17 Costing our Failure to Adapt to the Times Craig Stewart Vice President Federal Affairs Insurance Bureau Of Canada

18 Flood: Costing our Failure to Adapt to the Times National Disaster Mitigation Program Connie Cheung Senior Policy Analyst Emergency Management Policy and Outreach Public Safety Canada

19 National Disaster Mitigation Program Federation of Canadian Municipalities Thursday, February 11, 2016

20 Context Mitigation involves proactive measures to eliminate or reduce the risk of disasters before they occur in order to protect lives, property, the environment, and reduce economic and social disruptions - This includes structural measures (e.g. construction of floodways and dikes) and non-structural measures (e.g. risk assessment, flood mapping and landuse planning) In Budget 2012, the Government of Canada committed to explore options to develop a National Disaster Mitigation Program (NDMP) with Provinces and Territories (P/Ts). Public Safety Canada (PS) engaged P/Ts on a conceptual program structure for an NDMP, which was endorsed by Federal/Provincial/Territorial (F/P/T) Ministers in Spring 2012 Budget 2014 allocated $200 million over five years, beginning in , to establish the NDMP. Following additional consultations with P/Ts, the NDMP was launched on April 17,

21 Disaster Trend in Canada Disasters continue to be an increasing threat to the safety and economic stability of Canadian communities and businesses The Government of Canada s financial liabilities for the federally administered Disaster Financial Assistance Arrangements (DFAA) is estimated to be $1.8 billion over the next five years Flooding, and other water based events, are the most frequent and costly disasters in Canada 21

22 Disaster Mitigation in Canada In order to help address escalating disaster costs, and limit the federal government s fiscal exposure, Canada has begun to shift its approach to managing disaster risks by: - launching the NDMP - undertaking research and analysis activities to address floodrelated disasters in Canada - consulting with the insurance industry to advance the development of a national approach to residential flood insurance 22

23 National Disaster Mitigation Program The NDMP aims to reduce the impacts of natural disasters on Canadians by: - focusing investments on significant, recurring flood risks and costs; and - advancing work to facilitate private residential insurance for overland flooding The NDMP consists of two components: - $183.8 million over five years in contribution funding to Provinces and Territories (P/Ts) on a merit-based, competitive basis to use toward non-structural and small-scale structural flood mitigation measures - $9.3 million over five years to build the foundation for future, informed mitigation investments (e.g. develop a national risk and resilience repository, promote public awareness) 23

24 National Disaster Mitigation Program (cont d) The NDMP is designed to provide P/Ts with access to funding for projects across four project streams: - Stream 1: Risk assessments that inform flood risks - Stream 2: Flood mapping - Stream 3: Mitigation planning - Stream 4: Non-structural and small-scale structural disaster mitigation Benefits of program design: - ensures that foundational non-structural mitigation measures are in place to inform structural mitigation measures - helps meet pre-conditions for residential flood insurance (need for risk assessment, updated flood maps, mitigation planning) - systematically contributes to the development of a national risk profile 24

25 Current Status and Next Steps The first call for proposals went out in April 17, 2015 and P/Ts submitted a total of 35 NDMP applications. The majority were risk assessment and flood mapping projects. Contribution Agreements will be drafted with relevant P/Ts once projects are approved by the Minister of PS. Winter Continue working collaboratively with key stakeholders to advance work on establishing residential flood insurance for Canadians - Draft national principals, best-practices, and guidelines on flood mapping in support of the NDMP - Work towards launching the second call for proposals for the NDMP 25

26 Flood: Costing our Failure to Adapt to the Times National Disaster Mitigation Program Mapping Yvan Désy Senior Technical Advisor Canada Centre for Mapping and Earth Observation Natural Resources Canada

27 Flood: Costing our Failure to Adapt to the Times Flood Mapping David McGown Senior Vice-President, Strategic Initiatives Insurance Bureau of Canada

28 COSTING OUR FAILURE TO ADAPT TO THE TIMES David McGown Senior Vice-President, Strategic Initiatives Insurance Bureau of Canada

29 No. 1 Cause of Home Insurance Loss Fire Water Costing our Failure to Adapt to the Times ibc.ca 29

30 Flood Victim Compensation 1970s 1990s 2000s $40 million/year $100 million/year $600 million/year Costing our Failure to Adapt to the Times ibc.ca 30

31 Maps and Flood Model Costing our Failure to Adapt to the Times ibc.ca 31

32 Insured? Private Public / Private Partnership Costing our Failure to Adapt to the Times ibc.ca 32

33 No Made-in-Canada National Lack of Flood Insurance Solution Proper Mapping Needed Program Costing our Failure to Adapt to the Times ibc.ca 33

34 Accurate and up-to-date flood hazard mapping Adequate and ongoing investment in flood defences and stormwater infrastructure Widespread awareness of risk Limited recourse to government post-disaster compensation Costing our Failure to Adapt to the Times ibc.ca 34

35 Pluvial and Fluvial Flood Maps 1-in-100 year fluvial map 1-in-100 year fluvial and pluvial map Costing our Failure to Adapt to the Times ibc.ca 35

36 JBA DTM Digital Terrain Model DSM Digital Surface Model Costing our Failure to Adapt to the Times ibc.ca 36

37 JBA Gauge and rainfall record data Flood defence information Historical flood event records Snow melt data Calculated river flows for 24,000 locations HYDAT database of 1,664 gauge records IDF curves from 565 gauge locations Urban drainage data Costing our Failure to Adapt to the Times ibc.ca 37

38 Return period data Matrix data Annual damage ratio or ADR score Costing our Failure to Adapt to the Times ibc.ca 38

39 National Case Study Total residential properties: 8,626,387 Total properties at risk: 1,669,623 (19.3%) At-risk properties weighted average exposure: $249, Not at-risk properties: 6,956,764 (80.6%) Overall market value combined ADR loss: $1,255,709, Costing our Failure to Adapt to the Times ibc.ca 39

40 Ottawa Centre Case Study Total residential properties: 25,103 Total properties at risk: 3,945 (15.7%) At-risk properties weighted average exposure: $23, Not at-risk properties: 21,158 (84.3 %) 142 properties account for 18.9% of ADR combined loss Costing our Failure to Adapt to the Times ibc.ca 40

41 The flood model and maps provide us with the data we need to show the government there is a group of properties at high risk Costing our Failure to Adapt to the Times ibc.ca 41

42 Risks Through Private Market 90% Costing our Failure to Adapt to the Times ibc.ca 42

43 A flood insurance program will target those properties at highest risk Costing our Failure to Adapt to the Times ibc.ca 43

44 Urban planning and zoning purposes Targeting investment in infrastructure Mitigation initiatives Costing our Failure to Adapt to the Times ibc.ca 44

45 COSTING OUR FAILURE TO ADAPT TO THE TIMES David McGown Senior Vice-President, Strategic Initiatives Insurance Bureau of Canada

46 Flood: Costing our Failure to Adapt to the Times Questions? 46

47 FCM Sustainable Communities Conference Flood: Costing our Failure to Adapt to the Times Thursday, February 11, 2016

48 FCM Sustainable Communities Conference Flood: Costing our Failure to Adapt to the Times Thursday, February 11, 2016