We take concrete steps, based on robust and detailed data, in order to significantly reduce our greenhouse gas (GHG) emissions at the source.

Risk management

iA Financial Group integrates risk management, specifically the management of climate risk, into its responsible practices. Our risk management approach is presented under Governance and in our 2021 Annual Report. As at December 31, 2021, the company’s exposure to high emission sectors was relatively low. The oil and gas sector, for example, represents less than 4% of our total investment portfolio.

Probable maximum loss (PML) of insured products

We measure the probable maximum loss (PML) of insured products due to climate-related natural disasters.

The table below presents the net data, as well as our future exposure to disaster risk. This allows us to reflect the growth of our portfolio during the year and potential changes that may have been made to our reinsurance coverage.


1 in 50 1 in 100 1 in 250
Hurricanes 2 034 041 5 000 000 5 000 000
Tornadoes 5 000 000 5 000 000 5 000 000
Tsunamis N/A N/A N/A
Floods 5 000 000 5 000 000 5 000 000
Drought N/A N/A N/A
Extreme Heat N/A N/A N/A
Winter Weather 5 000 000 5 000 000 N/A

Legend: Net probable maximum loss (PML) of insured products due to climate-related natural disasters.

Lastly, we integrate environmental risk into the individual contract underwriting process, our enterprise risk management and the management of capital adequacy.

Auto and home insurance risks

For auto and home insurance risks, we consider the region in which an insured resides in the premium rate. Environmental risks vary by region, and we track this information in the history of losses for each region. Collecting this data therefore allows us to establish appropriate rates for each policyholder.

Capital adequacy

We also consider the potential impact of natural disasters in terms of capital adequacy. We use modelling for certain types of natural disasters, which is incorporated into probable scenarios and analyzed for impact on capital to ensure capital adequacy and sound risk management.

Our entire sustainability approach is supported and overseen by a multitude of stakeholders, such as the Risk Management, Governance and Ethics Committee, our President and Chief Executive Officer, our Chief Risk Officer, our Chief Investment Officer and our Chief Financial Officer. The involvement of senior management along with all managers and employees is a key to success in the fight against climate change.

Lastly, iA Financial Group now carries out its sustainability approach in accordance with TCFD recommendations and has disclosed its Carbon Disclosure Project data since 2007.