TORONTO, May 6, 2024 /CNW/ - A new report from
Insurance Bureau of Canada (IBC)
recommends policies that governments can adopt to help stabilize
commercial insurance premiums for businesses and reduce cost
pressures within the commercial insurance market.
"Our report provides governments with a road map for enhancing
the sustainability of the commercial insurance market," said
Liam McGuinty, Vice-President,
Strategy, IBC. "Key recommendations focus on reducing tax burdens,
adapting to climate change, reforming tort laws, tackling
challenges in commercial trucking, and enhancing cybersecurity
measures. These initiatives will contribute to a stronger
commercial insurance ecosystem, better equipped to support Canadian
businesses."
In developing the report, Fuelling business prosperity –
government's role in fostering a sustainable commercial insurance
market, IBC sought input from business organizations, including
the Canadian Federation of Independent Business, to understand
ongoing challenges and provide governments with policies and
reforms that can lead to a healthier operating environment for
businesses.
Taxes charged on top of commercial insurance policies emerged as
one of the top concerns for Canada's business organizations. The report
finds that depending on the province or territory, insurance
premium taxes and retail sales taxes can be up to 20% of the
premium; this can result from an overlaying of taxes, otherwise
known as "a tax on a tax." The significant cost of taxes may deter
businesses from securing adequate coverage. The report advocates
for eliminating or reducing these taxes and postulates that such a
move would encourage businesses to invest in comprehensive
insurance and risk management plans to ensure resilience against
unforeseen events.
"Commercial insurance plays a pivotal role by supporting the
stability and expansion of businesses in all industries," said
McGuinty. "It provides businesses with the necessary safety nets to
take risks, innovate, grow and meaningfully contribute to the
economy. Government has a critical role to play in ensuring policy
decisions support the continued vibrancy of the commercial
insurance sector, and support the stability and growth of
businesses."
Additional Resources
The commercial insurance industry provides tremendous value to
Canada's economy, according to a
recent report. Not only does it contribute nearly $15 billion to Canada's GDP, it provides about 115,000 jobs
and $8 billion in labour income.
A recent MNP report found that new commercial truck drivers who
haven't received adequate formal training are at higher risk of a
collision, which is a safety hazard for everyone on the road.
As cyber threats continue to evolve, businesses – particularly
small and medium-sized enterprises – will need more education on
cyber security, resilience and how to qualify for cyber
insurance.
About Insurance Bureau of
Canada
Established in 1964, Insurance Bureau of Canada (IBC) is the national industry
association representing Canada's
private home, auto and business insurers. Its member companies make
up the vast majority of Canada's
highly competitive property and casualty (P&C) insurance
market.
As the leading advocate for Canada's private P&C insurers, IBC
collaborates with governments, regulators and stakeholders to
support a competitive environment for the P&C insurance
industry to continue to help protect Canadians from the risks of
today and tomorrow.
IBC believes that Canadians value and deserve a responsive and
resilient private P&C insurance industry that provides
insurance solutions to both individuals and businesses.
For media releases, IN Focus articles, or to book an interview
with an IBC representative, visit ibc.ca. Follow us on LinkedIn, X
and Instagram, and like us on Facebook. If you have a question
about home, auto or business insurance, contact IBC's Consumer
Information Centre at 1-844-2ask-IBC. We're here to help.
SOURCE Insurance Bureau of Canada