Insurance Bureau of Canada (IBC) commissioned Deloitte Canada to undertake a report on the State of the British Columbia Strata Insurance Market.
Deloitte’s findings are that based on current market intelligence and feedback solicited from stakeholders, the strata insurance market has begun to stabilize, and it is unlikely premiums will return to pre-pandemic levels.
The report also found that commercial insurance for strata corporations remains widely available in B.C. However, challenges remain for certain stratas with a history of claims and those with higher risk exposure. Deloitte makes a series of recommendations for a whole-of-society approach to improve the overall risk profile and claims experience of the province’s strata corporations, as well as steps government and the insurance industry can take to improve market conditions.
Legislative reforms announced in 2020 are an important first step to addressing claims challenges with strata corporations, but enabling regulations are required to realize the full impact of these measures. Once in force, it will take some time before those reforms can have a long-term effect on affordability and return of market capacity.
IBC will continue to work with the B.C. government to implement next steps that will ultimately lead to better market conditions and better risk profile for B.C.’s strata market. This will not happen overnight, and it is incumbent on everyone involved to be part of the solution.
Strata corporations currently experiencing challenges securing available and affordable insurance can call IBC’s dedicated helpline at 1-844-2ask-IBC (1-844-227-5422), and speak to experienced insurance professionals. IBC also offers highly trained risk management experts, at no cost in supporting strata corporations and helping them secure coverage.
