DCN ARCHIVES

August 21, 2008

Insurance Bureau of Canada calls for national action plan on infrastructure

The Insurance Bureau of Canada’s call for a national action plan to upgrade water and sewage infrastructure is further proof increased investment in this area is needed, says the Ontario Sewer and Watermain Construction Association (OSWCA).

“Increased investment will save municipalities in the long run,” explains Frank Zechner, executive director of OSWCA. “If there is not an increase in investment and something happens, not only can their insurance coverage go up, it could also be denied.”

“Also, it ends up being more expensive to clean up if something does happen.”

The Insurance Bureau of Canada (IBC) has estimated that insurance companies pay more in claims for flood damages than for fire and theft combined, and it points to antiquated municipal infrastructure as the major cause of those damages.

Mark Yakabuski, president and CEO of IBC, recently spoke to the Vancouver Board of Trade about challenges climate change poses to Canada’s infrastructure. He outlined steps that could be taken to address the problem of climate change, stressing that the key is adaptation and improved infrastructure.

Yakabuski said governments need to improve aging infrastructure, strengthen building codes, build to stronger climatic design values and consider sweeping land use revisions.

IBC notes that storms in August 2005 in Toronto cost the insurance industry $472 million in damages. OSWCA estimates that water damage to homes from a single storm in the Greater Toronto Area can exceed $250 million.

“This antiquated infrastructure is not designed to handle these types of flow and we are not just talking about climate change but also intense development,” explains Zechner.

Toronto still has some 1,300 kilometres of combined sewers — systems that collect sewage and storm water in the same pipe. These systems were installed between 80 and 100 years ago, notes Zechner.

The footprints of homes are getting bigger, with less lawns and more asphalt and concrete. Also, with more people living in condominiums, current infrastructure cannot keep up with demand.

“With less lawns and generally no green roofs around, water is not going where it naturally wants to go and it gets diverted,” says Zechner. “There is nothing wrong with intensification plans for growth ... but you need have the systems in place to cope. You need to be able to deliver those critical services.”

The IBC recently reminded the Federation of Canadian Municipalities that infrastructure failure has played a devastating role in every major natural disaster in Canada in recent memory. All levels of governments were encouraged to work together to upgrade public infrastructure.

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