By RiskThinking Team
The Geneva Association's May 2025 report, Safeguarding Home Insurance: Reducing Exposure and Vulnerability to Extreme Weather, names a widening protection gap: rising rebuilding costs, continued development in high-risk areas, and homeowners insurance becoming harder to price or obtain in the regions most exposed to flood and wildfire. Canada is one of the jurisdictions where the regulatory response to that gap is already operational, not proposed.
The Office of the Superintendent of Financial Institutions (OSFI) issued Guideline B-15, requiring financial institutions to assess climate risk and develop transition plans.
In 2024, OSFI partnered with RiskThinking.AI to supply the flood risk data behind that assessment for approximately 400 financial institutions. The scope included high-resolution riverine and coastal flood risk data across 11 major Canadian metropolitan areas, letting institutions georeference residential properties directly against future flood exposure rather than relying on static historical maps.
That data runs on the same stochastic Climate Digital Twin (CDT™) methodology used across RiskThinking.AI's platform — full probability distributions rather than single-scenario estimates. For a report focused on exposure and vulnerability at the property level, that distinction matters: the properties driving the protection gap are the ones sitting in the tail of a distribution that deterministic, backward-looking maps don't capture.