An advocacy group has filed a complaint against the Financial Services Regulatory Authority in Ontario for insurance transparency.

What's happening?

The advocacy group, Investors for Paris Compliance, wants FSRA to be more transparent because of rising rates of natural disasters. Increased floods and wildfires are driving up prices, according to BNN Bloomberg.

According to its website, I4PC is a group that works with investors "to hold Canadian publicly-traded companies accountable to their net zero promises." It fights against greenwashing and wants people to be able to invest while creating a better future for their kids.

While BNN Bloomberg reported that this was a country-wide issue, I4PC started with Ontario because of its large housing market. Toronto also had a lot of flooding last year. It, as well as several other cities in Ontario, are very flood-prone.

Why are rising insurance rates concerning?

If insurance rates continue to go up, many people will be priced out of insurance policies. Financial transparency will make it easier for everyone (in Canada or otherwise) to prepare for natural disasters.

What's even more concerning is that this is happening because of plastic pollution and other actions that harm our environment.

Over 200 million people are at risk of frequent and severe flooding. The United Nations Office for Disaster Risk Reduction says this is because plastic blocks drainage systems. If we continue producing plastic at our current rate, even more people will be at risk very soon.

That can't happen when some insurance companies are stopping coverage in higher risk areas. While this is distressing, nothing will change until we address this.

People inside the insurance industry are starting to acknowledge how harmful this is as well. The Insurance Bureau of Canada stated that insurance damages were about $8.5 billion last year. This includes $110 million for flooding that happened in the Greater Toronto Area and southern Ontario.

What's being done about rising insurance rates?

While nothing has happened immediately, I4PC isn't giving up its fight.

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"This issue isn't going to go away," said Kiera Taylor, senior policy analyst at I4PC, to BNN Bloomberg. "Open-ended rate increases and reduced coverage isn't a temporary thing, and whether the regulator looks at this now or later, it's going to demand a response."

If you learn of efforts like this happening around you, it's good to get involved or at least stay informed. Even having conversations with people around you about their insurance rates and natural disasters can do a lot. Increased transparency and shared knowledge means better protection for everyone.

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