Munich Re teams with Wawanesa & WWF-Canada to launch parametric river flood solution

Reinsurance firm Munich Re has partnered with Wawanesa and World Wildlife Fund Canada (WWF-Canada), to develop and launch a parametric river flood insurance solution that will deliver rapid funding to safeguard nature-based restoration across the Wolastoq (Saint John River) watershed.

The arrangement, a first of its kind in Canada, applies parametric financing to the charitable sector to ensure climate resilience investments are protected and sustained over time.

The parametric arrangement was developed with support from Munich Re Canada, alongside climate-peril expertise from reinsurance broker Marsh Re.

Under the parametric structure, Wawanesa funding will be triggered by independently measured river levels, and if predetermined river conditions are met, Wawanesa will provide up to $1 million in funding each year, capped at a maximum of $3 million over a three-year period, to WWF-Canada.

Home to more than 500,000 people and stretching nearly 700 kilometres from Quebec to the Bay of Fundy, the Wolastoq watershed has experienced repeated major flooding and high-water events over recent decades.

This initiative will help support WWF-Canada and local partners in assessing impacts and responding more quickly to flood events, helping protect years of restoration investment from climate-related setbacks.

The funds will also support post-event assessments, targeted remediation, and local partner mobilisation, and continued restoration work, helping bridge the critical period following a significant high-water event before conventional public or charitable aid arrives.

Munich Re explained that this initiative brings together a shared commitment to climate resilience and community impact with company’s expertise in parametric solutions and natural catastrophe risk.

“At the heart of the solution is a parametric structure linked to observed river levels, demonstrating how risk-transfer innovation can help address climate-related challenges and strengthen community resilience. It is a great example of what can happen when insurance expertise, climate science and a shared sense of purpose come together,” Munich Re said.

James Bond, SVP, Chief Legal & Strategy Officer of Wawanesa, commented: “Resilience means investing before disaster strikes – and making sure that work can continue after it does. This innovative approach brings financial innovation and community investment together to help sustain restoration and resilience efforts already underway across the Wolastoq watershed. It is a practical example of how insurers can help communities support long-term resilience and reduce risk over time.”

In addition, the initiative also builds on Wawanesa’s existing commitment to the region, having invested over $1 million with WWF-Canada in the Wolastoq watershed over the past three years through its Climate Champions program. Local projects include restoring floodplains, stabilising riverbanks and planting native trees and shrubs, all of which effectively helps natural systems slow and absorb floodwater while creating long-term resilience benefits for communities throughout the watershed.

Alex Portman, Head of Corporate Partnerships at WWF-Canada, said: “The restoration of a 230-metre section of the Rivière-à-la-Truite near Edmundston is one example of how local partners are building resilience through nature-based solutions. Because this work takes years to deliver results, major floods can put hard-won progress at risk. This innovative partnership could help local organizations quickly access funding when it’s needed most, safeguarding restoration investments and keeping projects moving forward.”

Furthermore, both Wawanesa and WWF-Canada said that they see the partnership as a potential model for how finance and risk-transfer tools can complement investment in climate adaptation and resilience, supporting not only recovery after disruptive events but also the long-term resilience benefits created through nature-based solutions.

While the project will initially just focus on the Wolastoq watershed, the partners plan to evaluate lessons learned from the rollout to assess whether the initiative and similar parametric approaches could support resilience and restoration across other regions in Canada.

Mitchell McEwen, Director, Sustainability, Climate Resilience & Community Impact at Wawanesa, added: “This model shows how risk-transfer expertise can provide greater speed and certainty for local climate resilience projects. Wawanesa can play an orchestrating role – bringing together the right partners and expertise to explore how similar approaches could address different climate perils and geographies across Canada.”