Across the insurance marketplace, customers are seeking out organizations that are able to
offer comprehensive coverage at a reduced price-point. But with the increasing number of
mergers in the industry, it’s becoming ever more difficult for insurance shoppers to find
affordable rates. In this latest post, we’ll look the evolving insurance marketplace and the
premium cost increases that take place when companies merge.
In 2015, Desjardins acquired Ontario insurance firm State Farm. State Farm customers have
recently seen their prices align with Desjardins pricing levels, which in some instances means
significant increases in the long-term. For example, motorcycle drivers are now experiencing
significant rate increases this year, as State Farms preferred rates for motorcycle drivers are
removed in favour of higher rates through Desjardin.
Even those with a clean claims record are now finding that their rates are increasing within the
Canadian insurance market. Drivers that have over 20 years experience on the road without
being involved in an accident, receiving a ticket, or making any kind of claim are experiencing
noticeable rate increases this year. In addition to the rise in premiums, the merging of insurance
companies is limiting customer options. Instead of several companies in the market supporting
the needs of a broad range of insurance buyers, now companies are consolidating and limiting
their services in the process.
Options Available for the Proactive for the Customer
In spite of the latest changes taking place in the insurance marketplace, the customer still has a
number of choices for taking control of their long-term premium costs. One of the best options is
to work directly with an insurance broker rather than a company offering direct insurance
products. Brokers can help their customers analyze a number of different options at the same
time while balancing their coverage requirements and their budget.
Another clear advantage of turning to insurance brokers is they can do the negotiating work for
their customers. While insurance companies are only able to offer one price for a particular type
of customer, brokers can ensure that the individual achieves their ideal rate regardless of the
dynamics of the marketplace. Its a process that can help Canadians save thousands of dollars
on their insurance premiums.
Its important to take the time and review your insurance options carefully alongside a trusted
market specialist. Our experts can help guide you in avoiding the latest premium increases and
pinpointing the ideal coverage for your long-term insurance requirements.