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Political Action by the Canadian Insurance Industry on Climate Change

As insurance industry payments for severe-weather loss increased dramatically during the 1990s, some predicted the industry would lobby for greenhouse gas emission reductions. Analysts have noted the tentative steps in that direction taken by some firms at the international level but little research has yet been done on political action by the industry at the domestic level. This article provides analysis of the domestic policy role played by the Canadian insurance industry. In that country, the industry is taking political action but not, as anticipated, to lobby for reductions. Instead it is pressing the Canadian government for increased infrastructure spending which will reduce severe-weather loss and also to assume a portion of the insurance function through increased compensation funding. The industry sees adaptation as more effective than emission reductions and this sharing of the insurance function with government is a long-established tradition. We conclude that while economic interest is a crucial variable for analysts studying business participation in environmental politics, it is not one which is immediately self-evident.