ABSTRACT
This chapter aims to investigate the implications of introducing private residential flood insurance from the perspectives of key stakeholders. The nature of financial flood relief is therefore changing in Canada, and it is important to understand the perspectives of the main stakeholders during this transition. An important element of flood risk management involves spreading and distributing the financial losses that occur during flooding events. Floods are becoming a greater problem in Canada due to more extreme weather patterns, increasing population and increasing asset values. With government aid funded through public taxes as the main form of financial relief, the taxpayers of Canada have the burden of reimbursement for flood losses. The federal government and insurance industry generally agree that this reliance on government aid to recover flood damages is unsatisfactory and unsustainable. A global review demonstrates that there are several options to finance flood damages through insurance, with optional private insurance offering an attractive and feasible choice in Canada.
