© Imagine Canada, 2009
Will Our Insurance Premiums Be Going Up?
April 2, 2009
Manager, Insurance & Liability Resource Centre for Nonprofits
Nonprofits and charities need insurance. We do not sell insurance, but we are here to serve as a
resource for your organization and to help you ask insurance professionals the right questions as
you navigate the insurance world. You’ll find more information about these topics on our website
under “Insurance SmartTips.”
The current insurance marketplace
Insurance companies in Canada are generally, like many other businesses, feeling the impact of
the current economic climate. The 2008 results, released in the past few weeks, reveal that over
half of Canadian insurers that sell the type of insurance nonprofits need have lost money in the
past year in terms of premium vs. claims and expenses (underwriting results). They, like most
businesses, are also losing money on their investments.
In the past, insurers have often lost money in underwriting, but their investment gains would
make them profitable. That is now out the window and no one seems to know when investments
will be strong again, which increases pressure to improve underwriting results.
Should you expect your insurance premiums to go up on renewal?
The quick answer in the short term: CGL and Property premiums are seeing small increases in
the range of 5%, while D&O premiums are generally not going up at all.
I’ve asked insurance underwriters, brokers, agents and executives this question again this week.
There are differences of opinion during these turbulent times, but below is a summary of their
1. Commercial General Liability (CGL) policies and property coverage (building, contents) are
generally facing renewal increases in the 5% range. Some of my contacts do expect further
increases in the third and fourth quarters of 2009 and into 2010. So if your renewal is coming
up later this year for these types of policies, you may want to budg