Conceptualizing and evaluating the role of a data platform as an entry-point for strengthening flood risk governance in Canada

Only 18% of global flood losses experienced between 2011 and 2021 were insured. Governments are increasingly examining ways to transfer financial flood risks to the private insurance market. Flood insurance is widely recognized as an effective financial risk-transfer mechanism that helps societies efficiently recover from sudden and unexpected flood losses. However, flood insurance is often unavailable to high-risk properties via the private market. Insurers assert that access to better flood model data and sustained investment in flood damage prevention can foster flood insurance availability and affordability as risks can be more precisely evaluated and fewer damages result from flooding. This paper presents a conceptual framework for a data platform designed to reduce and manage the number of high-risk uninsurable properties through public-private data-sharing. Drawing on survey results from municipalities and insurance companies, it assesses whether the conceptual data platform has a role to play in Canada. The study entailed participation of municipal officials representing 59 Canadian cities, and insurance professionals representing 7 insurance companies. Findings confirm there is appetite for both sectors to engage in cross-sector data-sharing and that the conceptual data platform is perceived as a tool that could establish new forms of collaboration that can lead to changes in flood insurance availability in high-risk areas. Other countries experiencing insurance challenges with high-risk properties could benefit from testing the viability of the conceptual data platform in their context.