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“Hard Market” for Property Insurance

Explaining Rising Costs of Insurance

When renewal time approaches for your home, condo, or rental insurance, expect your premium prices to increase, through no fault on your part. If you’ve recently renewed your home insurance, you already know this. We understand that the current rate increases are frustrating for you and all our clients, especially when you’ve never claimed on your insurance. The reality is, however, that insurance has become more expensive. The Canadian insurance industry is currently experiencing what is known as a “Hard Market.”

During a “Hard Market,” insurance companies not only increase rates, but also might limit or reduce their business capacity and/or the extent of the coverage they offer. Some companies might withdraw from the market altogether, resulting in less competition, which leads to prices increasing even more.

What Causes a “Hard Market”?

When costs of being in business increase for the insurance companies, they have no choice but to pass along those increases to their clients. More severe and frequent claims, a tough regulatory environment, and falling investment returns are amongst the factors that can create a “Hard Market”. Recent extreme weather catastrophes such as floods, wind, hail, and wildfires that have been occurring across the country are responsible for the increasing number and size of claims.

Global large-loss events have an influence on your insurance rates, too. Just as you purchase your insurance through a company that your Murrick Group agent recommends, that insurance company also purchases coverage through worldwide companies called re-insurers. That way, your insurance company will have access to more than enough funds to pay for all claims, if there were a major catastrophe. The more money paid out by these re-insurance companies for worldwide catastrophes in a given year, the more frequently they increase their premiums. These increased rates trickle down to your insurance company, and subsequently to you.

“Hard Markets” tend to occur in a cyclical pattern, with no predictable time frame. Some of our clients may be experiencing their first “Hard Market,” while others may have gone through a previous one or more. However, this cycle will not necessarily replicate a previous one. Experts cannot predict when this “Hard Market” will end because many of the determining factors are out of everyone’s control.

What You Should Do

Most important is to contact your Murrick Group insurance agent who will help you find the most advantageous insurance for your needs. Just some of the steps we will take are:

  • Take advantage of all available discounts that are appropriate for you
  • Increase deductibles, where possible, to lower your premium
  • Make adjustments to some of your limits to reduce costs

Your Murrick Group insurance agent is here for the long term and we’re ready to help you through this “Hard Market.”

Do you want or need more information? Here is a direct link to see phone numbers and directions to all our Murrick Insurance Brokers’ locations, or you may also call our head office at +1.604.688.5158.

Make sure you’re covered

Our expert team is ready to serve you.

If you’re uncertain whether you have adequate coverage, of if you need any kind of insurance, please contact your Murrick Insurance Agent.



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Murrick Advisors provide comprehensive insurance and financial advice, along with quality products to individuals, families, and business owners. With an integrated planning-based approach, we are able to simplify your complex financial issues through innovative and personalized solutions.

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