Climate change and extreme weather are becoming a growing factor in workplace health, with implications for insurers, employees, and workers across Canada, Sun Life said.
In a new report, the insurer linked climate-related events such as heat waves, wildfires, and poor air quality to rising physical and mental health challenges. Based on drug-claims data from more than 2,000 Canadian employees, 59% said their physical health had been affected by climate or severe weather in the past three years, while 54% reported impacts on their mental health, including stress, anxiety, and sleep problems. Those with chronic conditions were twice as likely to report negative effects.
Nearly two-thirds of employers surveyed acknowledged that climate-related health risks pose a threat to their organizations. For insurers, that finding underscored the potential for higher benefit costs and demand for programs tailored to climate-linked health issues, from mental health support to chronic disease management.
Sun Life’s findings mirror wider pressures in the insurance sector. Property and casualty carriers have already been recalibrating underwriting strategies in response to the rising frequency and severity of weather-related losses. The Insurance Bureau of Canada has pointed to a surge in catastrophe claims, while firms such as Deloitte noted growing regulatory and market scrutiny around insurers’ climate exposure.
Other Canadian insurers are also sharpening their focus on the issue. Gore Mutual, for example, has moved to integrate climate risk into investment and underwriting policies, aligning with public demand for stronger action.
Meanwhile, the Office of the Superintendent of Financial Institutions is rolling out new disclosure requirements that will compel insurers to spell out how they are managing climate risk.
The Sun Life report suggests health insurers will increasingly need to adapt coverage to reflect climate-driven pressures, whether through enhanced benefits for extreme weather events, broader mental health provisions, or preventive workplace programs. Failure to respond could carry reputational and financial consequences, while early movers may be better placed to meet both regulatory expectations and client demand.
