A new $6.4 million stormwater project in Cole Harbour is being held up by Canada’s insurance industry as a template for how federal, municipal, and utility partners can work together to curb rising flood risk.
On Jan. 28, the federal government and Halifax Regional Municipality announced joint funding to improve stormwater management within the Upper Bissett Run watershed. The investment, supported by the Disaster Mitigation and Adaptation Fund (DMAF) and Halifax Water, is intended to reduce surface water, basement, and backyard flooding for residents in a community that has seen repeated heavy rain events.
For carriers watching Ottawa’s work on a national flood insurance solution for high‑risk residential properties, projects like Upper Bissett Run are more than local infrastructure upgrades. By reducing the underlying hazard in at‑risk neighborhoods, municipal adaptation spending can shrink the pool of homes that will ultimately need support from any future public‑private high‑risk flood backstop, making those schemes more affordable and sustainable for both governments and insurers.
In a statement, Amanda Dean, vice president, Atlantic & Ontario at the Insurance Bureau of Canada (IBC), called the project a “forward‑looking” example of how targeted infrastructure can reduce claims and improve resilience.
Amanda Dean was recognized as one of the Women Leaders in Insurance in Canada. Read the Elite Women special report here.
“IBC and its member companies welcome the joint $6.4 million investment by the Government of Canada, the Halifax Regional Municipality, and Halifax Water to strengthen flood protection in the Upper Bissett Run watershed,” Dean said. “This forward‑looking project will help protect residents from surface water, basement, and backyard flooding – risks that are increasing as severe weather becomes more frequent. This investment is an important step toward reducing flood risk in Nova Scotia and reflects a growing recognition across all levels of government that resilient infrastructure is essential to resilient communities."
The scheme forms part of a broader shift in federal disaster policy toward pre‑event mitigation rather than post‑event recovery. Ottawa’s DMAF has increasingly been used to co‑fund local adaptation projects such as upgraded drainage systems, flood berms, and other green and gray infrastructure aimed at managing extreme rainfall and riverine flooding. With Canada recording multiple consecutive billion‑dollar severe‑weather loss years and flood‑related water damage consistently among the top loss drivers, these projects go directly to the heart of property‑cat profitability.
Liam McGuinty, IBC’s vice president of federal affairs, said the Halifax announcement “underscores the critical role” of DMAF in supporting municipal adaptation projects across the country and directly links such investments to the insurance industry’s claims experience.
“Insured losses from severe weather exceeded $2.4 billion in 2025, according to Catastrophe Indices and Quantification Inc., highlighting the urgency of strengthening Canada’s climate defenses,” McGuinty said. “Flooding remains one of the most frequent and costly natural hazards affecting Canadian homes. Measures that reduce damage from high‑intensity rainfall events help protect residents today while lowering long‑term financial risks for homeowners, businesses, and public services.”
McGuinty reiterated IBC’s call for sustained federal funding for DMAF and similar programs, arguing that the economic case for adaptation is increasingly clear. “IBC continues to encourage sustained federal investment in programs like DMAF, which enhance community resilience and deliver significant economy‑wide benefits. As the federal government noted in its announcement, every dollar invested in climate adaptation can return as much as $13 to $15 in benefits,” he said.
