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Monthly Archives: November 2016

Rising auto insurance claims could lead to higher premiums in 2017

An unprecedented rise in auto insurance claims may affect policyholders as the industry mulls over premium increases. New findings from Canada’s General Insurance Statistical Agency reveals a surge in claims.

This year, policyholders’ rates have been squeezed, with claims on the rise. This resulted in a poor year for insurers. Manitoba saw a 68% rise in non-collision claims, while New Brunswick topped a 30% increase in claims. These rising costs across the nation may be reflected in next year’s premium rates for consumers.

Amanda Dean, VP of the Insurance Bureau for the Atlantic region, said it is difficult to predict what the industry will do overall with premiums following the recent rise in claims. She suggested that even though this occurred last year, it may not be a recurring trend.

We will continue to watch to see how premiums are affected next year. If you have any concerns, make sure you speak to your broker or company agent.

Quebec’s Airbnb regulations: Will homeowners abide?

Although Quebec’s provincial government recently amended its tourist accommodation legislation to regulate people participating in home-sharing, some have doubts on how the law has affected this new service.

Under the law, anyone who advertises rental accommodations for no more than 31 days must purchase at least $2 million of insurance, as well as secure a $250 permit. According to one media source, less than 500 permits have been issued across the province—41 of those in Montreal.

To compare, it is important to note that over 10,000 units are listed on home-sharing websites in Quebec—meaning that renters are not purchasing the necessary insurance.

Users are finding loopholes in the law, making lawmakers realize the need to take a stance against the illegal activity. Because the modifications were only issued five months ago, there is hope that over time compliance will improve.