Insurance Markets Update – June 2020
BFL Canada, a major broker of Strata Corporation insurance policies has published their latest Market Insights, which you can find here.
BFL summarizes the major issues facing insurers providing coverage in the Lower Mainland, the challenges with keeping rates low, and impacts COVID-19 has had on strata corporation insurance policies. They also discuss exclusions under the policy for pandemic-related losses, particularly claims made under either the Directors & Officers or Commercial General Liability coverages.
Of particular challenge is the pullback in capacity of “traditional insurers” from the local market. While new insurers are being brought on to try to expand capacity, this is certainly having a significant impact on premiums (for reasons they explain in detail).
We encourage you to read this important bulletin from BFL Canada – June 2020 Market Insights, and to reach out to them (or whomever your insurance broker is) to discuss your upcoming renewals with them to better understand how market forces are contributing to dramatically increasing insurance premiums. It is worth noting that there is a significant push from consumer advocates and industry stakeholders (including our firm) for Strata Councils to deal more directly with their respective insurance brokerage during the renewal process to ensure they are fully aware of all that is involved and are able to ask questions along the way. To that end, BFL has agreed to meet virtually with any client who has questions about their renewals, something we’d be pleased to facilitate on your behalf.