Wednesday, January 20, 2021
ADVT 
National

Change made to insurance for B.C. condo owners

Darpan News Desk The Canadian Press, 01 Dec, 2020
  • Change made to insurance for B.C. condo owners

Insurance companies in British Columbia have agreed to end a pricing practice that has been identified as one of the key factors in skyrocketing property insurance premiums for condominiums.

Earlier this year, the B.C. Financial Services Authority said premiums have gone up by 40 per cent on average for a number of reasons.

Finance Minister Selina Robinson says an agreement to end so-called best terms pricing on Jan. 1 is a positive step.

Insuring multi-unit properties in B.C. often sees many insurers submit bids.

Under best terms pricing, the final premium paid by owners is usually based on the highest bid, even if most quotes were lower.

Blair Morrison, CEO of the financial services authority, says the change is an important step for long-term stability in the property insurance market.

Robinson was the housing minister in June when she introduced legislation to change the Strata Property Act and the Financial Institutions Act to bring more transparency to the insurance market.

The Insurance Council of B.C., the regulatory body for insurance agents in the province, says it will work with the industry to address the practice.

Council CEO Janet Sinclair says the change will mean less price volatility.

A financial authority report released in June says price pressures will continue on buildings considered to be higher risk and the insurance market for so-called strata properties was "unhealthy."

It says insurers were accumulating losses mostly from minor claims, especially for water damage due to poor building maintenance and initial construction.

It says new building construction, building material changes and rising replacement costs have put added strain on the industry's profitability.

Insurers are also reducing the amount of insurance they offer in B.C. because of excessive exposure to earthquake risk, it says.

MORE National ARTICLES

Charges approved in two random Downtown Vancouver attacks

Charges approved in two random Downtown Vancouver attacks

In the first incident, the female victim was walking to a bus stop near West Georgia and Gilford streets on November 30 at 6:30 a.m. when a man allegedly approached her and sexually assaulted her.

Charges approved in two random Downtown Vancouver attacks

Economic statement headed to confidence vote: PM

Economic statement headed to confidence vote: PM

Speaking outside his Ottawa residence today, Trudeau says a vote on the fall economic statement will be one that will test the confidence the House of Commons has in his government.

Economic statement headed to confidence vote: PM

U.S. stays mum on Canada's prescription pushback

U.S. stays mum on Canada's prescription pushback

Health Minister Patty Hajdu has prohibited the export of certain drugs if such sales would create or worsen a domestic supply shortage.

U.S. stays mum on Canada's prescription pushback

StatCan: Economy posts record growth in Q3

StatCan: Economy posts record growth in Q3

The previous record for quarterly growth in real gross domestic product was 13.2 per cent in the first quarter 1965, the agency says.

StatCan: Economy posts record growth in Q3

Tories push for committee to dive into vaccines

Tories push for committee to dive into vaccines

The government announced the $44-million project in May as part of a partnership between the NRC and a Chinese company to develop a made-in-Canada vaccine.

Tories push for committee to dive into vaccines

UPDATE: Vancouver Police pleas for help in search of missing woman

UPDATE: Vancouver Police pleas for help in search of missing woman

UPDATE: SHE HAS BEEN FOUND SAFE AND SOUND

Autumn is Indigenous. She is five feet one inch tall, has a slim build, and is missing all of her top teeth. She has a fair complexion, brown eyes, and long, straight brown hair with blonde highlights. Autumn was last seen wearing a black zip-up puffy jacket and black yoga pants.

UPDATE: Vancouver Police pleas for help in search of missing woman

PrevNext