Canada’s billion-dollar climate losses are no longer rare events – they’re an annual reality. Floods, wildfires, and hailstorms are driving record catastrophe claims, leaving insurers and governments searching for ways to keep coverage viable while reducing the human and financial toll of disasters.
For Nathan Tjandrawinata (pictured), executive vice president of personal lines at SPG Canada, the answer is in helping homeowners prevent losses before they happen.
“Prevention is the new protection,” he told Insurance Business. “We have to make it simple, visible, and rewarding so that people actually do it.”
Insurers can’t expect homeowners to navigate climate resilience on their own, said Tjandrawinata. “Homeowners want to protect their property, but they need clear steps and quick rewards,” he said.
He suggests programs where insurers or brokers offer home checkups – basic inspections that flag affordable, high-impact upgrades like cleaning gutters, ember-proofing vents, or replacing flammable fencing. Once completed, homeowners could receive premium credits or higher coverage limits.
“Some programs in B.C. already do this and are recognized by underwriters,” he noted. “You make it easy, you show the impact, and people will act.”
Tjandrawinata believes underwriting should start reflecting prevention investments directly in pricing.
“If a homeowner installs flood-resistant features – valves, sump alarms, grading, window-well covers – insurers could remove a surcharge or deductible once verified,” he said.
He added that national standards such as the ICLR/IBC ‘Good-Better-Best’ guide and CSA Z800 flood guidelines are already becoming part of underwriting frameworks. “The more we build these standards into policy, the more we encourage people to take those steps ahead of time,” he said.
Still, he cautions that while mitigation matters, it has limits. “These actions are good for one-off losses, but in terms of catastrophic loss, they don’t do much,” Tjandrawinata explained. “By nature, a cat loss is catastrophic. A metal roof can reduce damage in a hailstorm, but if the storm is big enough, it can still cause dents, rust, and leaks.”
Preventing large-scale losses isn’t just an individual effort – it’s a collective one. Tjandrawinata said insurers and brokers should co-fund local rebate programs, promote public risk maps, and run seasonal awareness campaigns such as “spring flood prep” or “wildfire safety week.”
“Mitigation has to involve financial institutions, insurers, and government,” he said. “It’s not enough for one homeowner to act alone.”
He points to international examples of proactive community prevention. “In Japan, they prevent wildfires by having irrigation systems in the mountains,” Tjandrawinata said. “They spray water automatically, so the area stays wet. That’s the kind of systemic prevention we need – automated, community-wide, and built to last.”
Ultimately, data and transparency drive participation. “After major events, we should share before-and-after data that proves these upgrades reduce claims,” Tjandrawinata said. “When people see their neighbours’ homes survive, that’s one of the best motivators.”
He also noted that the insurance industry itself has to set the example, by supporting and publicizing the success of resilience programs. “If people can see that prevention is recognized and rewarded, more will invest in it,” he said.
While Canada’s building codes have evolved to minimize injuries and damage – particularly in earthquake zones – Tjandrawinata said the financial side of preparedness still lags behind.
“Preparation-wise, I think we do quite well,” he said. “Building laws support that. But for insurance companies and financial institutions, not quite there yet. Without the data, we don’t even know whether the rate is right.”
That lack of historical loss data, especially for low-frequency perils like earthquakes, makes pricing difficult – but it also underscores why prevention and planning matter more than prediction.
“The key is being ready before the next big event, not just responding to it,” he said. “That’s where prevention truly becomes protection.”
As insurers prepare for an even more unpredictable climate landscape, Tjandrawinata believes the next frontier in personal insurance won’t just be technology – it will be human connection.
“Success will come from maintaining genuine relationships with brokers, clients, and partners – not just relying on automation or pricing models,” he said. “The winners will humanize the experience, turning transactions into trusted relationships and insight-driven service.”
For him, the defining challenge of 2026 and beyond will be balancing viable pricing with empathy. “We have to keep coverage affordable, but we also have to make sure people understand what they’re paying for and why,” he said. “If customers see the value and trust the process, they’ll stay loyal even when rates rise.”
That trust, he emphasized, comes from listening. “Leaders will engage directly with brokers and customers to understand their pain points and unmet needs, not assume data tells the full story,” Tjandrawinata said.
He also sees opportunities in identifying and filling product gaps quickly – offering flexible deductibles, simplified condo coverage, or even lifestyle-based and subscription insurance models that better reflect how Canadians live today.
But the biggest differentiator, he said, will be blending technology with human judgment. “Use data to inform decisions, but let people guide how those decisions are delivered – with fairness and empathy,” he said. “That’s what makes personal insurance personal again.”
