Changes in Insurance Over the Past Year
Changes in Insurance Over the Past Year
Despite recent challenges in the worldwide economy – including fighting the effects of the coronavirus – the insurance industry remains resilient. While many insurers are looking for a way to achieve efficient spending, many also proactively invest in things like enhanced customer experience through digitalization and AI, and alternative product development.In Canada, the insurance market has had a positive impact from the global rise in technology, with more than 60 percent of millennials in Canada believing in the safety of online insurance information. This opens up many possibilities for insurers to focus on a growing market, while taking into account the changing economy and shift in consumer priorities.
Let’s take a look at some of the current trends in Canada’s insurance market.
Changes in Insurance Over the Past Year
Despite recent challenges in the worldwide economy – including fighting the effects of the coronavirus – the insurance industry remains resilient. While many insurers are looking for a way to achieve efficient spending, many also proactively invest in things like enhanced customer experience through digitalization and AI, and alternative product development.
In Canada, the insurance market has had a positive impact from the global rise in technology, with more than 60 percent of millennials in Canada believing in the safety of online insurance information. This opens up many possibilities for insurers to focus on a growing market, while taking into account the changing economy and shift in consumer priorities.
Let’s take a look at some of the current trends in Canada’s insurance market.
Targeting Millennials in Canada
With Generation Y being the largest demographic in Canada, it also represents a large pool of consumers for insurers to target. However, according to KPMG, insurers need to change their approach if they want to target Canada’s millennials. Specifically, the focus should be on flexible insurance products and short-term solutions.
But to do this, data collection requires a complete re-think and this includes privacy protection and data security. The aim is to have real-time data that drives user-specific risk profiles.
Understanding Risk with Data
One key element to the success of insurance companies this year and beyond, is the ability to collect and harness data on Canadians – specifically younger generations. It’s important for insurers to understand how they shift their priorities in order to create products that will support their modern lifestyles.
Chris Cornell, KMPG partner and national insurance sector leader, says, ‘Providing short-term, complementary, and personalised products means that Canadian insurance companies will need much stronger data collection and analysis tools.’ This could also lead to the ability for insurance providers to offer lower premiums while reducing their exposure to claims.
Improved Collaboration and Alliances
The insurance industry is home to a high level of competition and saturated areas such as home and motor insurance especially sees a lot of competitors competing for these markets. This means that to gain an edge, insurance companies need to differentiate themselves.
One way this can be achieved is by forming strategic alliances – which is different from an acquisition or merger. These alliances are common strategy among Canadian CEOs and it represents an arrangement between two providers or organizations to work together on a project while also having the ability to cut ties should it not work for either party.
If you are looking for insurance, Leaders Insurance has you covered. Take the time to get in touch so we can offer you a quote for all your needs.
The Ins & Outs of Home Insurance
The Ins & Outs of Home Insurance
Home insurance, often also called homeowners insurance, is no longer a luxury but rather a necessity. This is not only because it protects your property against theft or damage, but also because almost all mortgage companies require homeowners to have insurance cover.You likely won’t get a home loan or any finance for a residential real estate transaction unless you can prove that you are fully insured.
With the home insurance market in the US worth more than $105 billion, there are certainly a lot of options for homeowners to consider when taking our insurance.
Let’s go to the basics of home insurance and what it provides.
What is Home Insurance?
In short, home insurance can include several types of insurance cover for your property. It can pay to either replace or repair your house and your personal belongings if they are damaged by accident or in an incident such as a tornado or a fire.
Home insurance policies will also typically provide you with liability coverage that will pay out if you are responsible for an injury or accident.
If you don’t have a mortgage or any finance on your property, home insurance can still be a very wise choice as it provides you with cover for your property as well as liabilities.
Home insurance can provide:
- Repairs to your home or property. If your house suffers damage from a severe storm or has been burnt to the ground, your home insurance will help to cover the repairs.
- Replacement for personal belongings. A lot of insurance policies will also provide cover your personal belongings, not only inside the house but while you are away.
- Liability cover. If someone should be injured on your property, for example due to a fall in your walkway, home insurance can help cover medical and legal costs, should they want to sue you.
Types of Home Insurance Cover
There are different types of homeowners’ insurance available and it depends on your personal needs. You should assess the level of protection you will need as well as the type of property you want to cover. Essentially, there are three basic levels of insurance cover.
Replacement Cost
Policies for replacement cost will cover the actual cash value of your home as well as your possessions without any deduction for depreciation. This means you will be able to rebuild or repair your home up to the original value.
Actual Cash Value
Policies with actual cash value will cover the cost of the house as well as the value of your belongings after depreciation costs have been deducted. In easier terms, this means how much the items are currently worth, and not how much you have paid for them.
Guaranteed or Extended Replacement Value
This is a comprehensive type of cover and your policy will pay for the total cost of repairing or rebuilding your home. This means even if it turns out to be more than your policy limit. Some insurers will offer an extended replacement which gives you essentially more coverage than you originally purchased, but there will typically be a ceiling of 22-25% higher than the limit.
Choosing the right home insurance is an important decision and it is a priority for anyone owning a home. There are ways to reduce costs, such as maintaining a security system, taking multiple policy discounts, and planning for renovations. With these tips in mind, it will be much easier to make an informed decision when it comes to home insurance.
If you are looking for insurance, Leaders Insurance has you covered. Take the time to get in touch so we can offer you a quote for all your needs.
The Essential Elements of Contractor’s Insurance
The Essential Elements of Contractor’s Insurance
If you’ve ever been involved in a building project you’ll know just how important it is to have contractor's insurance. Whether you are having a leak fixed in the roof, or adding a new guest bedroom, there is a list of things that can go wrong during any home construction project.In 2018, the net claims incurred by liability insurance in Canada were more than $3 billion. Public liability insurance is important, not only to assist in the event of injuries, but also to cover legal costs for yourself or others in the event of an accident or property damage.
What is Contractors Insurance?
A contractor’s insurance policy is appropriate for most construction projects. It includes cover for private houses, cluster homes and small blocks of flats, and up to large projects such as shopping centres and power stations. This type of insurance specifically caters for a specific insurance market with unique insurance requirements.
Policy Cover
With all risk cover, your policy will typically provide over for construction works that are damaged as a result of fire, landslips, earthquakes, storms, theft and malicious actions. As with most insurance policies, contractor’s insurance will have some limitations, even though it is classified as all risk. That’s why it’s important to discuss your needs with your insurance provider to make sure that you get the cover you need.
Premiums
As a contractor, you will likely buy insurance every year to cover the work you will be doing throughout the year. So the premiums will vary based on your annual turnover, keeping in mind the excel level and policy limits required. Insurance can also be bought on a short-term basis, which is good if you only need cover for a single project.
What Should Homeowners Consider?
When you commission a maintenance or construction project for your home, you may forget to check the insurance status of the contractor you work with. This could lead to significant financial losses, should something go wrong. So if you are planning a renovation or a rebuild, it’s important to make sure the contractor you use is fully insured for:
- Contract works – This will cover the contractor for any sudden or unforeseen physical damage or loss caused to your property, other than those specifically excluded.
- Public liability insurance – This will cover your contractor for any legal liability due to damage to the property of others, or injury to a member of the public while working.
When you want to start a renovation project at home, always discuss your requirements with your contractor first, and share any concerns you may have. They can then inform you if they are covered for specific events, and also help you check to see if your home insurance policy will cover the building project. In some cases, you may need to pay higher insurance premiums, depending on the work being done.