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Spring Brings Floods to Quebec

The spring flooding is at its peak and although most water levels are down, some areas of the province are still considered to be major flood zones. Some flooded residents are facing an incident that is not their first and in the face of repetitive flooding, it is essential to rethink urban planning in high-risk areas.

Quebec Premier Francois Legault says his government is implementing new programs that will take into account repetitive incidents encouraging people to relocate out of flood zone areas. A new version of the compensation program came into effect April 15th, simplifying the process of receiving financial assistance for citizens dealing with the consequences of disaster.

Insurers are less likely to insure homes that have previously suffered water damage. For more information, contact your broker or company agent.


IBC Welcomes Reform of Compensation Program

Insurance Bureau of Canada (IBC) welcomes the new Government of Quebec Coalition’s compensation and financial assistance program, which came into effect April 15, 2019. Genevieve Guilbault, Deputy Prime Minister of Quebec and Minister of Public Security, says the new program is part of a sound management of funds and is an updated solution. During a press conference in Sainte-Marie, she stated that the program is more humane, flexible and efficient.

Peter Babinsky, IBC’s Director of Communications and Public Affairs, says this is the first step to a solution for the organization. They have been asking various governments to stop building or rebuilding in flood zones but their recommendations are not always heard. They want to encourage residents who are at risk to relocate or install certain infrastructures, such as flood barriers or sand bags to greatly reduce risk. He emphasizes that the new assistance program provides for a severance allowance or immunization for a resident in a high-risk area.

The insurance industry cannot cover all flood risks if flooding continues in the same places annually. For more information, contact your broker or company agent.


Businesses Moving More Services to the Cloud, Heightening Security Risk

Many companies are moving sensitive activities to cloud providers, thus becoming at risk for cyber scams. This could come in the form of an email phishing scam, where a hacker gets access to your mailbox allowing them to steal HR data and redirect payments.

Manish Khera, Cyber Security Incident Response and Investigations Leader with Ernst and Young Canada, says companies are at great risk when a hacker phishes the “right person” in the company. He has spoken publicly about lessening cyber risk, helping employers make sure their employees do not fall victim to scams and citing proper training as a key mitigation technique. Other forms of protection include using multi-factor authentication and browser plug-ins that inform users when their passwords have been compromised. For more information, contact your broker or company agent.


High Winds Have Costly Impact on Canadian Insurers

The Institute for Catastrophic Loss Reduction (ICLR) and the Standards Council of Canada released a report suggesting the need for a new national standard on wind resilience for homes. The report draws on the significant amount of research that was recently conducted and is the first to focus specifically on provisions related to wind resilience.

Between 1983-2017, 64% of the catastrophes that swept through Canada had a wind component. Storms, tornados, windstorms or hurricanes caused insured damage of $25-million or more. The development of a new standard would be the first step in mitigating damage to residential and small building properties from wind-related natural disasters.
The ICLR report proposes measures in four major categories, emphasizing protection of roofs, which are especially exposed to damage from high winds. Regulation will come after measures outlined in the report have gone through a code development process. For more information on this, contact your broker or company agent.


How to Avoid Basement Flooding

When the weather gets warmer, there is a chance of flood to your basement from melted snow. Here are tips that can save your basement from water damage.

  1. Move snow and ice away from your home.
  2. Check for any cracks to your home’s foundation.
  3. Unclog eaves troughs and other drainage that can overflow and move to the lower levels of your home.

Using these tips could save you upwards of $10,000 dollars on home repairs if your basement gets flooded. These repairs may not be covered under your insurance policy, because not all insurance companies cover overland and sewage flooding. For more information on this, contact your broker or company agent.


Jaguar Land Rover Canada ULC Partners with Aon for Car Insurance

Jaguar Land Rover Canada ULC has partnered with Aon Reed Stenhouse to offer brand-specific automobile insurance coverage for their customers and vehicles.

The reason for the partnership is to make things even more personalized for Jaguar and Land Rover clients. What’s included in the insurance package is original car parts for repairs, premium discounts, and exceptional service.  The insurance is offered for their entire line of vehicles, whether that be collector editions to daily commuter vehicles.

Aon offers the custom insurance right at the dealership.  The insurance is called Jaguar Insurance and Land Rover Insurance. It was introduced on February 4, 2019 throughout Canada. For more information on this, contact your broker or company agent.


Ontario Government Working Well With The Financial Services Regulatory Authority

The Progressive Conservative government of Ontario and the newly appointed Financial Services Regulatory Authority (FSRA) will be working together to restructure auto insurance rate regulations, supporting auto reform strategy, and developing fraud reduction policies. FSRA replaces FSCO this year.  Additionally, auto insurance rate control methods will be reviewed and the question of whether postal codes have a relation to a driver’s rating factor will be examined.

Insurance companies want modifications to the approval process when it comes to rate increase as it takes too long and may have an impact on their profits.

The FSRA budget and priorities documents will have input from the Ontario government working to reduce fraud, and improve the decision making process.  FSRA is expected to take over from FSCO sometime in June.


Aviva Canada Making First Notice of Loss Reporting Easier

Aviva Canada is making it easier for drivers to report their first notice of loss. A first notice of loss (FNOL) is the claim report that drivers need to give when there is a loss, theft, or damage on something that is insured. Ontario and Alberta now has automatic FNOL services at all collision reporting offices. There will be more automatic FNOL services coming to Alberta this month.

All of the information in the report is sent to Aviva where it is confirmed and a claim number assigned.  Aviva has decided to do this because damage reports have to be made multiple times to the collision reporting office, carrier, and the insurance broker.

It can take up to 3 days for a FNOL to get to the insurance broker. Once a claim is made, the new automatic service gets the report to the broker instantly.  Now the broker can review up-to-date loss specifics, adjuster information, and payment details of claims quickly and easily. For more information on this, contact your broker or company agent.


Potential premium impact on auto insurance from cannabis related claims

Canada’s recent legalization of Cannabis has raised some questions as to how it will affect the public –  particularly when it comes to auto insurance.’s senior business unit manager for insurance, Matt Hands, believes the increase in auto insurance premiums due to marijuana legalization is not a matter of why, but when.

“Once insurance providers analyze the data available to them, in most cases, they will need to apply with provincial regulators before they can raise rates,” Hands told Yahoo Finance in an interview. This could mean that it could take months or years for these policies to come into effect.

Data on cannabis-related accidents and impairments in Canada remain scant  as the substance was just legalized weeks ago. But data from the neighbouring USA suggests that auto insurance costs could actually increase as a result.


Making a successful home insurance claim:

One in six household insurance claims are rejected each year. GoCompare has some advice to help ensure your claim is successful. Insurers have revealed the main reason for rejecting a claim is that the incident was not covered by the insured’s policy.

Make sure that you do your research and ensure that you choose the right coverage. If you are unsure, then contact your broker or insurance provider.

In the event of a possible claim, acting quickly, following procedures and being honest are 3 of the best tips listed by GoCompare. Acting quickly, despite being in shock, can ensure your success with a claim. Adjusters can assess the damage while it’s still fresh and prior to you having to live around it. Claims procedures can also be very detail-oriented. Ensuring that you follow procedures and give an honest and complete account of the incident   will go a long way in getting you to a successful claim resolution.