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Originally Posted by Ozy_Flame
I initially thought this as well, but I'm wondering if the cap put in by the NDP was actually preventing insurance companies from keeping up with affording their claims payouts. The article says there are more claims now and they are paying $1.12 for every $1 earned, which may be why some insurance companies were trying to pull out of the province.
I am normally all for insurance caps and I am not sure getting rid of them all together is the solution, but if claims are increasing we need to address that challenge for both the insured and the insurers.
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Quote:
Originally Posted by Firebot
All insurance is going up. Condo insurance has gone up 100% to even 250% for wood condos in some instances this year. Our condo board was hit very significantly.
Simply put, insurance companies are not making any money and we are in a province that has been plagued with natural disasters in the past decade (including hail).
A cap like it was put in by the NDP is just backwards socialist thinking, companies are private and can simply refuse to insure Albertans and take their business elsewhere, and a few already have. Now we have less players without a cap.
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I'm not going through the entire industry, but if you look at the combined ratio for a company like Intact (which is largest by market share in Alberta I think), they're not at 112% in Canada. It's true that the ratio is lower in the US (94%) but in Canada they're at 97% according to their second quarter release this year.
I'm not suggesting that everyone is in that boat, or that rates shouldn't keep up. But I would be curious to see where the actual numbers lie for Alberta and across the board in general. (It's probably out there, but this isn't something I plan on digging into!)