February, 15 2023 Published by Huronia Chapter - By Jon Juffs
Insurance Bureau of Canada Update
From the CCI Huronia Winter 2023 Condo Buzz Newsletter
The Insurance Bureau of Canada is a national industry association (ibc.ca). It represents the vast majority of the Canadian property and casualty (P&C) insurance market. The IBC works to advocate for property and casualty insurance that is available and affordable to all Canadians. This includes Condominium and Strata P&C coverage. Since early 2020, the Canadian Condominium Institute has dedicated some of its volunteer resources to helping the IBC navigate CondoLand.
Fire, Water, and Ice
For context, IBC notes that severe weather in 2022 caused $3.1 billion in insured damage – making it the 3rd worst year for insured damage in Canadian history. Of Canada's top 10 highest insured loss years on record (loss and adjusted expenses in 2022 dollars), seven of them have occurred in the 2013 to 2022 decade. They are related to wildfires, floods, ice storms, hailstorms, rainstorms, windstorms, hurricanes, and bomb cyclones. It is becoming clear that “Canada is increasingly a riskier place to live, work, and insure,” says Craig Stewart, Climate Change and Federal Issues, Insurance Bureau of Canada (IBC).
This reality has been driving market conditions with rising claims costs and low returns on investment due to low interest rates between 2015 and 2019. That, among many other economic factors, caused a “hard” market, where some consumers may face insurance availability and affordability challenges. In this scenario, capital investment is lower and the supply of insurance is limited. Consequently, underwriting standards have become more strict and consumers are struggling to find insurance coverage they can afford.
As discussed during the CCI-Huronia Webinar on January 20, 2023, the IBC response has been keen and forthcoming. They set-up a commercial insurance task force and invited key stakeholders, including the Canadian Condominium Institute. Despite the onslaught of the pandemic, meetings were held positions clarified, conditions analyzed, and action taken, including:
- email@example.com – dedicated to pointing consumers in the right direction, making meaningful connections, and providing key information.
- http://www.ibc.ca/on/home/types-of-coverage/condominium-or-strata-coverage - Condominium or Strata Coverage explained and typical and optional coverages to obtain and consider.
- http://www.ibc.ca/on/insurance-101/condo-action-plan/condo-strata-corporations - Tips and strategies for corporations.
- http://www.ibc.ca/on/insurance-101/condo-action-plan/condo-strata-owners - Answers and guidance for common owner concerns.
Canadian Condominium Institute Engages
The goal of the Canadian Condominium Institute (CCI) is to form partnerships with its members to create, encourage, and promote a strong condominium community in the vibrant Canadian marketplace. Our objectives include educating and advocating. This challenging time has forged a beneficial relationship with IBC. We look forward to continuing a deepening of this relationship and helping condominium communities continue becoming the best they can be.
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