Understanding Rising Insurance Rates

By Cowan Insurance Group

Climate change has caused damage in every corner of the world, with Canada being no exception. As more and more home and business owners face costly weather events, insurance companies are seeing more claims being filed and paid.

According to the Insurance Bureau of Canada, in 2018, severe weather led to $1.9 billion in insured losses. As insurance companies look to provide their clients with the coverage they need and deserve, an increase in rates has been necessary to remain viable. In the past, when insurance companies paid out more in claims than they took in with premiums, they could rely on investment portfolios as a buffer. With severe weather events occurring more frequently, returns from investment portfolios can no longer cover the rising claim costs.

Unfortunately, changes in price can go beyond home and property insurance. Your auto insurance rates may have also increased. Even if you have had no claims, there could be several reasons beyond your control that have led to your premiums rising, including sophisticated auto computers and sensors that are expensive to repair, an increase in the incidence of fraud, or your geographical location.

Although some insurance rates are changing in response to these many factors, we can’t predict when and how these rates could change. However, our role as your broker is to find you the coverage you need at a price that is fair by shopping around for you, comparing quotes, and analyzing options. We know there is competition for your home and auto insurance dollars, and we strive to be your best advocate by finding the best rates available to us.

If you have additional questions or would like a quote on your home and auto insurance through the LAS group program, contact Sharon Davies at sharon.davies@cowangroup.ca.