Insurance premium costs have jumped in recent years.
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Homeowners have experienced an average increase of 20% in five years. For businesses, premiums have increased by 50% over the past three years.
A phenomenon attributable to the shortage of labor, the explosion in the price of wood, but also to climate change. Indeed, insurers have seen a 50% increase in claims in five years.
The pandemic is also having an impact on the price of insurance premiums.
The general manager of the Corporation of the property owners of Quebec (CORPIQ), Benoit Ste-Marie, mentions that certain sectors are more difficult to insure. This is particularly the case for retail businesses, where the number of thefts has increased over the past two years, since they have often been closed.
“Insurance companies, in certain key sectors, have lost a lot and must pool their losses,” explains Benoit Ste-Marie.
In addition, the number of insurance companies is declining. Several have merged in recent years, which has reduced competition and helped drive up prices.