About This Event
Territorial rating is being shaped more and more by climate risk, raising questions about bias in insurance pricing. Ratemaking based on postal-code or geography-based boundaries may place disproportionate burdens on some communities. This session shares an outcomes-based fairness analysis of climate-related territorial rating in Canadian property insurance, supported by the CAS Canada Workgroup.
Our analysis combines KatRisk exposure data alongside Canadian Census and CIMD demographic data. We use average annual loss (AAL) by geography and examine how climate-related premiums vary by income, racialized population, and Indigenous identity. We also estimate the practical implications of a more solidarity-based approach: how much it would cost and how many people it could affect.
Finally, we discuss important data limitations, including the use of insured exposure only and the limits of aggregate-level analysis.
