Municipality Insurance Premiums Soar: CBC Radio-Canada Interviews CEO, David Richards
March 15, 2021
By the end of 2020, municipalities in Northern Ontario were startled to see that their insurance premiums had increased dramatically. To gauge how widespread the increases were, the Federation of Northern Ontario Municipalities (FONOM) issued a survey to it’s members – the results are concerning.
From 2019 to 2020, FONOM members averaged a 24% increase in their insurance premiums, some soaring as high as 40%. Depending on how municipal budgets are reallocated to meet this increase, constituents could feel the impact in terms of taxes and cuts made to social programs. The increase in premium has been experienced province wide, prompting the Association of Municipalities Ontario (AMO) to submit their third letter seeking assistance from the Attorney General, garnering mainstream media attention.
Recognized for his expertise in helping municipalities across Canada, EQUA’s CEO, David Richards, was interviewed by CBC Radio-Canada for his take on the insurance challenges that municipalities are up against.
“Due to increased costs associated with the numerous lawsuits, many insurance companies have chosen to pick up their toys and go home.”
Dave estimates that nearly 70% of insurers have left the municipal insurance field over the past ten years, due to the increased of cost court rulings caused by Joint and Several Liability (the 1% rule).This has resulted in a “strong, upward trend” in the price of insurance premiums that municipalities are facing at renewal.
In response to the growing concern for municipalities and the insurance outcomes they’ve been dealt, EQUA has released an insurance solution that offers competitive pricing while increasing the coverage available to Canadian municipalities.To learn more about this solution and how we can help, click here.