Why Are Insurance Premiums Increasing In Canada?
Regardless of where you or your business is located in Canada you might have heard or experienced firsthand that insurance premiums are increasing in Canada for products like commercial property insurance, commercial general liability insurance etc. In response to this reality, many people are rightfully asking “why are insurance premiums increasing in Canada?”. The answer to why are insurance premiums increasing in Canada isn’t a simple or easy one as the pricing of the property and casualty insurance products is complicated and complex and involves numerous factors. We created this post to do our best to help people understand some of the reasons why insurance premiums are increasing in Canada and below are some of the reasons:
- Increase in claims/losses from extreme weather events and natural disasters like forest fires, hurricanes, heavy rainfall etc.
- Dramatic losses on the part of some of the world’s and Canada’s largest insurers including Lloyd’s of London
- Government regulation and legislation
- Changing trends around personal injury and accident litigation
- Actuarial analysis and predictive modelling
- Increasing costs to repair vehicles due to increasing amounts of embedded technology that is expensive to repair or replace if damaged
- Increasing operating costs for all organizations involved in the insurance industry
It should be noted that all of the above reasons have nothing to do with the specific attributes of any one person or organization’s operations or actual risk attributes. This is because insurance rates/premiums are set based on pools, industries, classes of business, geographies etc and then refined based on the specifics of the operations. It should also be noted that nearly all of the above factors are largely outside of the control of anyone person or organization so how do you respond to the changing reality? We’d encourage you to connect with an ALIGNED Insurance broker to discuss any or all of the above further and what can be done to help your organization/business. Our team of expert business insurance brokers can help you and your organization understand and better manage trends and fluctuations in insurance costs in a number of ways including:
- Aggressive re-marketing of your renewal to some of the 50+ top Canadian insurers we work with
- Insurance program optimization and restructuring to decrease total cost of risk (TCOR)
- Increasing deductible levels for greater premium savings
- Ensuring brokerage service levels and compensation are appropriate for the services and work being done
|ALIGNED Across Canada
100% Canadian owned, ALIGNED is a premiere insurance brokerage that serves nearly 1,400 clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours. Uniquely within the industry, ALIGNED business insurance brokers create, negotiate and deliver the best business insurance and risk management strategies/solutions to organizations like yours. As one of Canada’s fastest growing insurance brokerages, we invite you to learn more about us and connect @ALIGNEDonRisk, on Facebook or LinkedIn.