The cost of insurance coverage has skyrocketed lately.
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Residential property owners have endured a 20% average hike in insurance costs over the past five years. For commercial enterprises, the increase has been a staggering 50% over the last three years.
This surge is linked to several factors: a shrinking workforce, soaring lumber prices, and the intensifying effects of global warming. Insurers have witnessed a 50% upswing in claims within the last five years.
The ongoing health crisis also significantly influences insurance premium costs.
Benoit Ste-Marie, chief executive of the Corporation of Quebec Property Owners (CORPIQ), highlights the increased difficulty in securing insurance for certain sectors. Retail businesses, frequently shuttered during the pandemic and consequently experiencing a rise in thefts, are particularly affected.
“In key sectors, insurance providers have incurred substantial losses and are now forced to consolidate these losses,” explains Mr. Ste-Marie.
Furthermore, the insurance market is experiencing consolidation. Numerous mergers over recent years have reduced competition, thereby fueling price increases.
