In 2023, the insurance business in Canada had difficulties due to factors like natural disasters and an increasing car theft problem.
According to analysts at Ratehub.ca, we can learn a lot about what industry professionals and consumers can expect in the coming year by looking at these trends.
Vehicular fraud and theft
An increase in claims related to vehicle theft is expected to pose difficulties for insurance providers and policyholders, as stated by Ratehub.ca’s VP of Insurance, Matt Hands.
Cost pressures caused by vehicle theft and fraud might make it “overall difficult for consumers to have choices and options for the best rates,” as Hands pointed out.
Naturally, insurers are the ones that bear the brunt of auto insurance fraud, as they are the ones that have to pay for it. Customers will feel the effects of this, though, in the form of higher rates, he warned.
Events caused by Mother Nature
As record-breaking wildfires and storm-induced flooding occurred in Canada this year, the insurance industry faced the increased intensity and frequency of natural disasters as a major problem.
Coming into the new year, Hands raised attention to the likelihood of a “domino effect,” cautioning consumers to brace themselves for possible inflation in home insurance premiums as a result of the high number of claims caused by recent disasters.
As a result of climate change and subsequent catastrophic catastrophes, the insurance business has been severely impacted, according to Hands. All rates will go up because “providers need to make this money back somewhere.”
Home and vehicle repair insurance
Morgan Roberts, director of RH Insurance, made a comment about how the rising cost of repairs for modern vehicles is a direct result of technological advancements.
The good news, according to Roberts, is that people are fixing cars faster and that inventory is “no longer as big of a concern.”
Repair claims in home insurance, according to Roberts, highlight the need for policyholders to routinely examine their coverage in light of increasing costs.
“The coverage may be missing for some older properties, but most policies have guaranteed replacement value built in,” she explained. This means that the policyholder is protected for the whole cost of rebuilding in more modern properties.
