Being a proud cooperative, The Co-operators (Canada) believes it should deliver safety for their customers. The frequency of fires, including the 2016 Fort McMurray wildfires which were an immense tragedy for the people of Alberta, highlighted coverage gaps. This disaster was closely followed by strong storms and flash floods in nearby areas resulting in record-breaking water levels and damage. These events brought into focus the need for action and The Co-operators concluded that flood coverage was an unmet need.
After numerous water-related disasters in Canada and the growing acceptance about the impact of climate change, solutions had to be pro-active and needed to be developed in an inclusive way. Predictions showed that weather events were set to worsen and there was a growing realisation that the country’s infrastructure was out of date.
To ensure that the flood product was viable, they initially partnered with the Government in order to get this right. Together they agreed that their mission should be to advance flood resilience in Canada.
The next step was to widen the stakeholder circle and so they created Partners for Action involving diverse group insurers, reinsurers, banks, the Government and construction companies. Their focus was to better understand the flood risk. This process also involved talking to other countries, some via ICMIF, about how they approached this task. The Partners for Action group continues to work together and shares information to reduce the risk from floods. The Government accesses all the insights from this group and this helps them to better serve the community.
The next focus was to fully understand where the highest risk areas are located. Researchers completed a full assessment with forecasting stretching into 2030. They provided homeowners with strategies and advice to help prevent and adapt to flood situations. The Co-operators launched their flood product initially in Alberta and rolled out coverage across the other states. It was the first insurer to offer the new flood product in Canada.
With its strong belief in “profits for the people”, The Co-operators wanted this product to be available to everyone. The product coverage description had to be explainable within two minutes and the language had to be very simple and accessible. The coverage is comprehensive but allows the customer to make choices regarding coverage levels.
Education is extremely important and therefore the rollout includes information about what homeowners can do to mitigate damage. If there is an imminent flood, they are advised about risk reduction steps.
The cooperative approach carried out by The Co-operators, meant that it was able to provide just one full policy with complete coverage. Other insurers did not do the same and instead offered split policies. Coverage was also accessible to all Canadians despite differing levels of exposure to flooding.
