@bible_mum Maybe all of the insurance fraud as of late re: arson? Coupled with home values also being up a silly amount which makes everything more expensive come repairs.
Nobody should be happy with high home prices because these are the outcomes.
@karleyanahid Markets dropped historically last year. Both bond and equity markets ended the year down. Only second time that’s ever happened in history.
@resjudicata Yeah I know but that shouldn't mean overly too much for an insurance fund compared with the massive increase in rates, At least for pension funds who also heavily invest in bonds it was a boon because it meant they could match their future liabilities much easier. Of course with pensions I guess the liabilities are less predictable so they may not be able to hold maturity. They are paper losses after all and unless forced to liquidate institution should be fine. That was the problem with the banks That failed is they were forced to liquidate.
@karleyanahid So right now a lot of Canadian insurers are paying more in claims than the premiums they bring in.
If you’re familiar with reinsurance, I can tell you that every single Canadian insurer has exhausted the first cat. tower of their reinsurance coverage. It’s a blood bath in the insurance market right now. Expect premiums to rise sharply.
