Budget 2026 includes a historic national solution to systemic earthquake risk and measures to enhance competition
Today, the Government of Canada released its 2026 federal budget, Masters of Our Destiny. Following the budget release, Celyeste Power, President and CEO, Insurance Bureau of Canada (IBC), issued the following statement:
“The commitments announced in today’s budget on earthquake preparedness and regulatory modernization are important steps toward strengthening Canada’s economic resilience and long-term financial stability.
“IBC welcomes the federal government’s commitment to introduce legislation that would address the financial and economic risks posed by a major earthquake. This is a critical step toward better protecting Canadians and strengthening Canada’s financial resilience in the face of one of the country’s most significant disaster risks.
“A major earthquake is a question of when, not if. Experts have long warned that a catastrophic earthquake could cause unprecedented damage to homes, businesses and infrastructure, with significant economic impacts felt across the country for years to follow.
“By establishing the Canadian Earthquake Insurance Facility to help manage the financial consequences of a catastrophic earthquake, the federal government is taking meaningful action to address a well-understood systemic risk and reduce the potential burden on taxpayers and impact on insurance consumers. Most importantly, it will give Canadians greater confidence that the country is prepared for the financial shock a catastrophic earthquake would bring.
“For decades, the property and casualty (P&C) insurance industry has called for a government response to Canada’s systemic earthquake risk, as Canada is the only G7 country with significant seismic risk without a solution in place. Today’s announcement marks a significant milestone toward a stronger, more resilient Canada. We look forward to continued discussions with the government as the details of the program are developed and implemented.
“IBC also welcomes the government’s commitment to amend the Office of the Superintendent of Financial Institutions’ (OSFI’s) mandate to embed competition as a key consideration. This important change will help foster a regulatory environment that maintains financial stability while ensuring OSFI’s decisions give consideration to proportionality, compliance burden and market impacts.”
Learn more about the earthquake issue and IBC’s proposed solution here: Canada must prepare for a catastrophic earthquake.
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