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How Recent Weather Trends Affect Your Insurance

Are you wondering why your insurance premiums are set the way they are? If so, then you’re not alone. There are many factors that can have an effect, but according to insurance officials one of the more notable factors these days has been the weather. There has been a higher than normal number of extreme weather events and those have had a noticeable effect on insurance policies.

Weather events such as ice storms, cold snaps and flooding have been occurring with a higher than normal frequency across the country, especially in Manitoba, Alberta and Ontario. But are these patterns affecting the whole country or just those provinces? Here’s where the insurance industry is divided. Some experts argue that insurance premiums are pooled for the whole country, and when there is a loss in that pool in one part of the country then other parts feel it as well. Others argue that premiums are community-specific, and a disaster would only affect the premiums in the community that suffered the loss. It’s hard to say specifically what is causing these changes, as there are several factors affecting premiums, both local and international.

Either way, there is no doubt that these weather patterns are increasing claims. Data from the Insurance Bureau of Canada shows an increase of 72.3% between personal property claims in Manitoba from 1995 to 1999, and from 2010 to 2014. A notable increase in claims can certainly affect premiums across the board.

If you have any concerns about your premiums then make sure you speak to your broker or company agent, who may have more information about coverage in your area.