Earthquake Insurance in Alberta - Is Your Family at Risk?

“Earthquakes are a fatal risk and are projected to have an even greater impact on our economy than the flooding of 2013 in Southern Alberta.”
Earthquake Insurance

A major earthquake in Western Canada could prove to be much more costly than the flooding in Calgary in 2013. It is the country's most prevalent natural disaster according to a new study by IBC.

Frequency and severity of natural disasters is on the rise in Alberta. Canadian insurers are still reeling from the flooding that happened in 2013 in Southern Alberta. 

The rain and flooding in Alberta cost insurers about $2-billion (U.S.) according to a recent report by reinsurance company Swiss Re. That was the largest insured loss recorded in Canada. 

Earthquakes are a fatal risk and are projected to have an even greater impact on our economy than the flooding.

With all of the oil fracking that takes place in Alberta, Albertans have a high risk of seeing such an event in the near future. Seismic activity in such regions as Oklahoma, Texas, Arkansas, Ohio, and other oil rich states has been directly correlated to fracking and putting fracking waste water in underground disposal wells.

“It is only a matter of time before we start seeing this seismic activity happening in Alberta.”

Earthquakes have increased by 40 times between 2008-2013 in these areas. It is only a matter of time before we start seeing this seismic activity happening in Alberta.

To better understand how fracking works, see the video below: "Fracking Explained"

Currently, only about 31% of insurance customers have Earthquake Insurance. The majority of those being commercial clients insuring commercial property.  There have been talks about making Earthquake Insurance mandatory for all homeowners to reduce the risk for all Albertans.

Protect your family and talk to your broker about this important coverage today.

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Posted on January 28, 2015 .

3 Things you need to know about Telematics and your Car Insurance

telematics insurance

Telematics rewards good drivers who are careful and diligent by tracking their speed, cornering, and braking. Airdrie motorists with no claims history and a good driving record could save even more should telematics become available in Alberta.

What is Telematics?

Telematics is the blending of computers and wireless communications.  Canadian Underwriter believes it could be the answer to eliminating generalities in insurance and "put an end to age and gender discrimination". By tracking an individuals driving habits, insurance companies would be able to charge appropriate premiums for that person based upon a number of factors. Some of which include speed, cornering, braking, distance traveled, the time of day you're traveling and other related factors that could affect your insurance rates.

What does this mean for your Family?

If you're a person who is a diligent driver with safe driving habits and a clean driving record it could mean much lower premiums for you. Especially if you fall into a demographic that is generalized as being "high risk" in our current insurance system.

Young drivers could benefit greatly from this program, especially 16-25 year old drivers. We could expect to see a significant decrease in their insurance premiums should telematics be brought to Alberta.

Effective vehicle tracking technology in Alberta would make this data available to the driver so that they could adjust and address their driving behaviour accordingly and, effectively, have some control over their insurance premiums.

Below is an example of what is currently offered in Quebec and Ontario.

When will Telematics become available to Albertans?

Currently in Ontario, telematics is a voluntary discount program that operates on a "Pay as You Drive" basis and has, so far, been successful. Albertan's could expect to see voluntary telematics implemented as early as 2015.

Sixty-one per cent of Canadians believe they would indeed pay less for auto insurance, but two-thirds say that it would take more than $100 per year in auto insurance savings to entice them to switch.
— http://www.insurance-canada.ca/

However, most Albertans aren't familiar with telematics and "Pay as You Drive" insurance. From those polled, 6 out of 10 drivers surveyed said they would be willing to try such a program to save money on their auto insurance premiums. Sixty-one per cent of Canadians believe they would indeed pay less for auto insurance, but two-thirds say that it would take more than $100 per year in auto insurance savings to entice them to switch.

 

 

 

Posted on December 15, 2014 .