Low return on investment – During the last three decades, investment income, when added to premiums, covered the cost of claims. However, as we all know, investment returns have declined dramatically since the late 90’s. As a result, insurance companies now have far less investment income to offset underwriting losses.
Claims – Although the number of automobile accidents has not changed in recent years, the number and cost of injuries have dramatically increased.
Fraud – When others cheat, we all must pay. The Canadian Coalition Against Insurance Fraud estimates that 15 to 22% of personal injury claims are fraudulent – costing the industry $500 million a year.
Global catastrophes such as the 1998 Québec-Ontario Ice Storm, the terrorist attacks of September 11, 2001, and the severe flooding in Europe in 2002, resulted in major claims payments.
However, we have all the best tools and knowledge to “shop around” on your behalf in order to obtain the best coverage at the best possible price.