No easy solutions to the complex problem of high condo insurance premiums: report from British Columbia – BC News

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A crown corporation that regulates private sector insurance companies in British Columbia says that an average 40% increase in condominium insurance premiums is the result of a variety of factors, including the risks insurers face in due to earthquakes and floods.

The BC Financial Services Authority says the risks of catastrophic events, some of which involve climate change, have put additional pressure on the profitability of insurance companies, affecting premiums and deductibles in parts of Canada and around the world .

However, he states in a final report that the issues at stake are complex and there are no simple solutions, so consumers shouldn’t expect short- or medium-term relief from further increases. of price.

Frank Chong, the company’s vice president of regulation, says the Alberta condominium insurance market has also been hit hard and claims costs need to be reduced.

The report does not make recommendations on how the BC government should approach issues that impact housing affordability by increasing monthly residence fees and deductibles.

Provincial legislation introduced earlier this year will end a practice called best-deal pricing effective Jan. 1, where multiple insurers would bid on policies and instead of choosing the average cost, the highest price would be set as the premium.

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