TORONTO – A climate advocacy group is pressing Ontario’s financial services regulator to take action on rising home insurance rates linked to climate change. In a complaint filed with the Financial Services Regulatory Authority of Ontario (FSRAO), Investors for Paris Compliance argues that the regulator should demand more transparency about the trends driving rates upward.
The group highlights that Ontario home insurance rates have surged 84% between 2014 and 2024, far outpacing the 28% increase in the main Consumer Price Index (CPI) inflation measure over the same period. While the FSRAO provides detailed statistics on automotive insurance trends, it fails to offer comparable transparency on home insurance.
Investors for Paris Compliance is calling for the FSRAO to launch an investigation into home insurance trends, focusing on future affordability concerns. The group also wants the regulator to explore long-term strategies to protect the sector’s stability and examine property insurers’ investments in fossil fuel companies, despite climate change being a significant driver of rate increases.
“Home insurance rates in Ontario are a black box – we only know they keep going up,” said Kiera Taylor, senior policy analyst at Investors for Paris Compliance. “We need greater transparency about what’s happening and a plan from the regulator to address growing home insurance unaffordability in the face of increasing climate damages.”
The complaint underscores the complex relationship between climate change, insurance rates, and regulatory oversight. As extreme weather events continue to impact Ontario, the issue of home insurance affordability is likely to remain a pressing concern for homeowners and policymakers alike.
