OSFI leader calls for rethink on pricing

OSFI leader calls for rethink on pricing | Insurance Business Canada

Catastrophe & Flood

OSFI leader calls for rethink on pricing

The sooner this is done, the faster we can innovate, he suggests

Catastrophe & Flood

By
Terry Gangcuangco

“The faster we price in the cost of climate, and the risk, the faster private enterprise will innovate solutions like adaptation.”

Those were the words of Peter Routledge, the Superintendent of Financial Institutions, during this week’s CatIQ Canadian Catastrophe Conference in Toronto. At the event, he sat down with Insurance Bureau of Canada president and chief executive Celyeste Power for a fireside chat.

A report by The Canadian Press cited Routledge as saying that getting clear risks pricing and measurement is the best way to respond to climate change. The Superintendent also pointed to the need to ensure that risk-based capital gets the upside while absorbing the downside.

Today, Superintendent Peter Routledge sat down with Celyeste Power, President & CEO at @InsuranceBureau

The Superintendent talked about #ClimateRisk as a key concern for OSFI and shared risks specific to the P&C industry.

Read more: https://t.co/OtrufxD6Lf pic.twitter.com/iAodDdlXVA

— Superintendent of Financial Institutions (@OSFICanada) February 6, 2024

According to the Office of the Superintendent of Financial Institutions (OSFI), climate is a high-profile risk.

In a release, the agency said: “During the talk, he explained OSFI’s bespoke approach to its role as prudential supervisor and mentioned climate as one of the most high-profile risks in OSFI’s Annual Risk Outlook.

“He also addressed specific risks to the P&C (property and casualty) industry, and what to expect from OSFI this year. Superintendent Routledge also touched on specific climate risks concerns, particularly heightened risks like floods and earthquakes.”

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