When will Canadians pay their premiums?
Insurance industry statistics show a steadily rising number of Canadians are paying their premiums, but that the average premium is still well below the average in the U.S. and other developed countries.
The average U.K. household pays £1,814 ($2,664) a year, but the average Canadian household pays $1,946 ($2.21).
The average average U-S.
household spends $3,739 ($4,942) a month.
Insurance industry analyst Andrew Porter says the trend is in the right direction, and that consumers are being forced to pay more for the same coverage.
“There is a trend in Canada right now, that the U-K.
is experiencing, which is that there is more competition.
We are seeing more insurers and less competition,” Porter said.
“It’s a trend that we have seen in the last few years.
“We see that in Canada, we see that there’s more competition and we see the premiums have gone up over time, and the insurers have been very responsive and have been able to keep prices down.” “
Porter says in the short term, premiums will continue to rise. “
We see that in Canada, we see that there’s more competition and we see the premiums have gone up over time, and the insurers have been very responsive and have been able to keep prices down.”
Porter says in the short term, premiums will continue to rise.
“They are going to keep going up, and it’s a fair price for the consumers,” he said.
Porter said the average U.-K.
insurance rate was $3.6 per month in 2016, and was $5.4 in 2019.
Porter says that is a decline of 0.7 per cent from the year before.
“If we look at the longer term, you have the trend of insurance companies going through consolidation and going through mergers and acquisitions.
So, there’s going to be a lot more consolidation in the insurance industry,” he added.
Porter expects the number of insurers in Canada to double by 2020.
In the U.-S., which is seeing the steepest increases in premiums, the average insurance company is increasing premiums by 1.3 per cent a year.
Porter argues that will be even more pronounced in Canada.
“The average U S. consumer pays about $1.5, so I think there is a very clear benefit from having insurance that is very, very competitive, which you see in many developed markets,” he explained.
That’s going be the driving force behind the premium increases in Canada.”