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VANCOUVER (NEWS 1130) – BC strata owners suffering from massive and rising insurance rates will have a little break in the new year as the end is nearing a practice that has contributed to sky-high taxes.
Insurance companies decided to end the “best price” – which meant premiums were based on the highest bids for insurance – by the end of 2020. The practice resulted in strata paying the highest premiums. even if the low ones were offered.
The BC Financial Service Authority (BCFSA) conducted problem analysis and looking for solutions.
The premiums were based on the highest bids for insurance.
“Overall premiums were about 27% higher than if another pricing method had been used,” says Frank Chong, vice president and deputy superintendent of financial institutions, while removing the best pricing conditions will help alleviate some of the price pressures, not being the main reasons for the increases. “
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He says the layered construction was the one most affected by the best forward prices.
“We looked at a sample of months of properties that bought insurance in layers and found that 94% had an impact,” says Chong.
Asifa Lalji, who has insisted on the change since the construction rate of its strata has increased by 300%, says this is just a drop in the bucket.
Finance Minister Selina Robinson says pricing on best terms is a positive step towards a health insurance market.
“This is a very complex problem with many factors contributing to the increase in premiums, and I look forward to receiving the final report from the BCFSA and reviewing its findings so we can continue to work towards workable solutions to this problem. which impact many British Columbia residents, “he said in a statement. “
The final BCFSA report will be published this month.
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