The Canadian insurance market has taken a turn that is impacting clients. After over a decade of a “soft market” the Canadian insurance marketplace showed definite signs of “hardening” in early 2019. Canada’s predominantly commercial insurers paid out $1.03 for every $1 in premiums earned in 2018. Clients and their brokers are now encountering a shift that brings an end to an extended period of intense competition defined by abundant capacity, attractive terms and low rates. Insurers are taking action with client selection in an effort to return to profitability

The factors weighing down insurer profitability are not new.

• Claims: Predominantly commercial insurers in Canada enjoyed year-over-year top-line growth of 11% in 2018, but claims grew by 22%
• Low Interest Rates: Investments yields were 1.51% last year which is less than the return on a GIC.
• Low Return on Equity: ROE was a very weak 2.07%, making it difficult to attract investors to inject capital into the Canadian insurance industry.
• Water Damage: Water damage losses, including severe storms, over take fire as the leading cause of property damage.

Despite the hard market, RealProSure has remained stable with our pricing. Our rates have not increased and we have fought to make sure that our clients get the best coverage at the best price. We understand the importance of stability in times like this and are constantly working to make the insurance process easier for Canadian real estate professionals.

For more information on the current market and how RealProSure can help, contact Lindsay Wills at lwills@toolepeet.com or 403-209-5461.