Flood coverage for residential home insurance customers is far more advanced than even four years ago, but solutions must be refined to tackle remaining problems, argues the president of Direct-Line Insurance.
Since the devastating floods that troubled Alberta in 2013, insurance companies have introduced flood-related coverage and solutions have increased in availability and what they offer to customers. Gord Ender says the P&C industry has “come a long way” since 2013.
Speaking to Canadian Underwriter, the Direct-Line Insurance president added in “a short four years,” insurers generally have “responded quite well” and flood coverage for residential home insurance customers is more available. “Sometimes in the world of business, these types of things, and especially a contentious issue such as flood, can take a long time to implement,” he added.
Ender will be participating at the upcoming National Insurance Conference of Canada (NICC), where he will be on a panel discussing flood risk in the country.
“We’re at that point where, okay, we’ve got coverages out there; now we need to start fine-tuning those coverages,” Enders says.
“In fact, some companies have to step up to the plate and start providing those coverages. I think those who choose not to provide those types of coverages, at some point, will be left behind,” he warns.
Enders says finetuning output will be to “do with rates, with zones, with the actual wordings,” he explains.
“It means consumers need to be doing their homework and insurance brokers need to be doing their homework” to ensure the cover is appropriate, Enders points out.