The Canadian government is sponsoring the development of a low-cost flood insurance program to cover current gaps in coverage. The newly released 2023-24 federal budget allocates $32 million over three years to lay the groundwork.

“This would include offering reinsurance through a federal Crown corporation and a separate insurance subsidy program,” the budget document states. “The government will engage provinces and territories on the development and implementation of the program, as well as the requirements for its long-term fiscal sustainability, including cost-sharing and risk mitigation.”

The budget also pledges $15 million over three years to underwrite a new online portal that will give users easy access to information about their exposure to flood risk. As well, the government announces its intentions to revise the framework for disaster financial assistance, which has seen it pay out more than $5 billion in aid during the past 10 years.

“As climate change makes natural disasters more frequent, the program must be modernized to increase its focus on prevention and resilience,” the budget document advises. “Budget 2023 proposes to provide $48.1 million over five years, starting in 2023-24, and $3.1 million ongoing to Public Safety Canada to identify high-risk flood areas and implement a modernized Disaster Financial Assistance Arrangements program, which would incentivize mitigation efforts.”