IBC Congratulates BC Financial Service Authority on its Strata Report

VANCOUVER, BC, Dec. 18, 2020 /CNW/ - Today, the British Columbia Financial Services Authority (BCFSA) issued its final report on the state of strata insurance in BC. Insurance Bureau of Canada (IBC) congratulates the BCFSA on its report and believes this is an important first step toward improving the insurance market for strata corporations in the province.

The BCFSA's report highlights what's behind the current insurance affordability challenges in BC's strata insurance market: rising claims costs, noting that "Claims costs and claims experience have the single biggest influence on premiums and deductibles".  This report is a call to action for the BC government to work with stakeholders to address claims costs that have driven up premiums and to improve the risk management of strata corporations across the province.

BC's strata corporation regulations are lax compared to those in other jurisdictions, which has led to the failure of many strata corporations to adequately maintain and repair their properties, contributing to the crisis that strata unit owners are facing today. The BC government's Bill 14, Municipal Affairs and Housing Statutes Amendment Act (No.2) is an important step in addressing these challenges and IBC encourages the government to bring forward these new regulations at the earliest opportunity. Once enacted by the government, Bill 14 would set clear guidelines for strata corporations and unit owners on what they are responsible to insure, would strengthen requirements around strata corporation reserve funds and depreciation reports, and would cap the maximum amount that can be assessed toward a single unit owner.

IBC and its members have presented a number of solutions to the government, and are committed to working with all stakeholders to ensure that consumers have access to affordable strata insurance over the long-term.

"While the insurance market for strata corporations is stabilizing, stratas that continue to make frequent claims or those at higher risk may face challenges," said Aaron Sutherland, Vice-President, Western and Pacific, IBC. "We urge the government to bring forward regulations to enact Bill 14, and to adopt best practices from jurisdictions across Canada to help improve the strata insurance market over the long term."

About Insurance Bureau of Canada
Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.

P&C insurance touches the lives of nearly every Canadian and plays a critical role in keeping businesses safe and the Canadian economy strong. It employs more than 128,000 Canadians, pays $9.4 billion in taxes and has a total premium base of $59.6 billion.

For media releases and more information, visit IBC's Media Centre at www.ibc.ca. Follow us on Twitter @InsuranceBureau or like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC.

SOURCE Insurance Bureau of Canada