As climate change causes extreme weather events to become more frequent, home insurance claims are rising—causing upwards of $2 billion in insured losses per year. These losses undermine Canadians’ financial security and emotional well-being. Moreover, the resulting home damage leads to increased landfill waste from discarded building materials, generating additional greenhouse gas emissions and further fuelling climate change
Collaborating with Innovation North, Co-operators leveraged our Compass to re-imagine the role of insurance companies in helping homeowners adapt to climate change, prevent future losses, and implement sustainability practices.
Imagine a world...
where insurance providers help build climate resilient communities.
In Spring/Summer 2022, Co-operators and Innovation North initiated the first phase of their joint effort as part of Co-operators’ Resiliency and Sustainability (R&S) Program. This phase aimed to address the escalating costs Co-operators faces from extreme weather-related insurance claims.
The project utilized Innovation North’s Compass to identify opportunities for climate adaptation and mitigation with a focus on exterior building materials, such as shingles, siding, and fencing. The project used systems thinking to support Co-operators’ goal of repairing homes to better withstand severe weather events, while simultaneously minimizing environmental impact by reducing waste sent to landfills. The aim was to strengthen community resilience, contribute to a more sustainable future, and create a circular economy within the building materials industry.
Throughout Phase 1, the project focused on strategies to extend the lifecycle of building materials, aiming to generate potential revenue to offset costs and promoting methods to rebuild damaged homes with greater resiliency. This phase of the project produced twelve potential ideas, laying a solid foundation for further progress and innovation.
Imagine a world...
where insurance companies prevent future losses by implementing sustainability practices.
Phase 2 of this project was conducted in Spring/Summer 2023 to build on the insights from Phase 1 by moving from ideas to actions. This phase focused on three specific ideas, developing them into short-term experiments for potential implementation.
The final deliverable for Phase 2 was a comprehensive plan outlining how Co-operators could advance each of the three selected initiatives. Recommendations included:
- Detailed steps for implementing the short-term experiments, ensuring a clear path for Co-operators to proceed with each idea.
- Identification of partnership opportunities with relevant actors, such as certification bodies, vendors, and recycling facilities, to support the implementation of the proposed solutions.
- Thorough assessment of the feasibility and desirability of each idea, enabling Co-operators to make informed decisions about which solutions to pursue further.
The evolution from Phase 1 to Phase 2 demonstrates Co-operators’ commitment to creating a sustainable and resilient future by incorporating systems thinking into their innovation practices and promoting shared value creation for both the company and society.
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