Insurable Interest Canadian Insurance Blog

First natural catastrophe of 2024 highlights growing cost pressures facing insurance premiums Toronto, ON (Mar. 11, 2024) – A deep freeze in Western Canada in January is estimated to have caused over $180 million in insured damage, according to initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ). “It’s been an unusual winter season, with extreme swings in conditions across the country,” said Rob de Pruis, National Director, Consumer and Industry Relations, IBC. “In January, British Columbia, Alberta and Saskatchewan experienced an extreme cold weather event that led to widespread water damage caused by frozen and burst pipes. Based on total claims counts, approximately 70% of all claims related to this extreme cold event were personal property claims.” Much of Western Canada started 2024 with unseasonably mild temperatures; however, on January 12, daytime highs dipped sharply to well below the seasonable normal and persisted for several days. Environment Canada reported dozens of new daily minimum temperature records were set. Edmonton saw four straight days with temperatures between -40 to -45 degrees Celsius. IBC reminds residents that an insurance policy does not change in winter, or with specific temperatures. Instead, insurance covers various perils outlined in your policy. That means that...

Ottawa, ON (Mar. 15, 2024) – In response to the Housing & Climate Task Force’s release of its Blueprint for More and Better Housing, Jason Clark, Chair, Climate Proof Canada, issued the following statement: “Canada needs 5.8 million new homes by 2030 to restore housing affordability. Climate Proof Canada is pleased that 18 of the recommendations from its National Climate Adaptation Summit were cited in the formation of the Blueprint. One of the requirements of the National Adaptation Strategy (NAS) is that resilience must be incorporated into all infrastructure investments by 2024. Canada must recognize the impact climate change is having on households across the country. We must factor resilience measures into housing investments so that we build homes in the right way and in the right places, so that households are protected now and into the future. Where we build resilient homes represents the biggest opportunity in the report. Seizing it will require coordinated leadership by all orders of government. As such, we call on governments to legalize density, including by eliminating unit maximums, abolishing parking minimums, and adopting ambitious density rules near transit lines, as well as ensuring no new housing is built in areas at high risk of...

Erik Bahnsen, Industry Analyst, CCC — It’s no secret that we’re in the midst of a uniquely challenging time for personal auto insurers due to a convergence of factors including risky driving and significant increases in the cost of auto repair/replacement, labor, and medical bills. The industry has reacted to those challenges with unusually steep premium increases. In the last year alone, the average auto premium cost increased by 17%. With the latest projections predicting profitability challenges to persist until at least 2025, it’s reasonable to expect this current hard market to continue through at least the same time period. Some downstream impacts have already been articulated, including increased policy shopping and lower customer satisfaction scores. Others are starting to creep in under the radar, yet all have the potential to compound current challenges to insurers, as well as create opportunities. It’s the less immediately obvious downstream impacts that are the focus of this feature, both for purposes of raising awareness and preparing insurers to take proactive measures. Confucius once said, “Plan ahead or find trouble on the doorstep.” Let’s start with the impact on drivers most vulnerable to the financial strain of sustained premium increases: Faced with inflation on...

Partnership brings pay-per-mile auto insurance options to the VIU platform, scaling the growth of insurtech Mile Auto Chicago, IL (Mar. 12, 2024) – VIU by HUB (VIU), an omnichannel insurance brokerage platform, is pleased to announce a partnership with Mile Auto, a pay-per-mile auto insurance company. The partnership brings an innovative solution to VIU enabling customers to access affordable car insurance based on how much they drive. The partnership also enables Mile Auto to leverage VIU as a digital omnichannel platform to improve customer acquisition costs and grow its customer base. “VIU continues to deliver on its promise to provide differentiated, personalized and innovative solutions to our customers and partners while Mile Auto gains the opportunity to improve its customer experience and scale its business,” said Bryan Davis, EVP and Head of VIU. “This partnership is a win-win for all parties involved.” Mile Auto uses computer vision and decision analytics to support pay-per-mile auto insurance options. With this coverage, drivers only pay for the miles they drive plus a low monthly base rate. Precision-driven premiums can lead to financial savings for those who drive less than 10,000 miles a year, such as college students, retirees or remote workers. “As insurance...