Sharing the pain

The Fort McMurray fire disaster is also going to be a multi billion dollar insurance disaster.

There is no way that the collected premiums on the houses there have enough cash in them to pay for even a few houses.

There is no way that future premiums can be raised to provide a payback for the settlements.

The actuaries will be asking "Could this happen in Toronto or Barrie or...." and adjust risk levels.

The smoke damage will spread across Canada over the next few years.

The various insurers will raise rates on all policies everywhere to make up for the losses.

Brace yourself.

As it should be. This is how insurance collectively works. If Toronto had such a calamitous event I'm sure they would help with our insurance premiums as well. Spread the pain across many rears eases the sting.

TorontoBoy said:

As it should be. This is how insurance collectively works. If Toronto had such a calamitous event I'm sure they would help with our insurance premiums as well. Spread the pain across many rears eases the sting.

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Agreed. If the insurers had to get financially even in Fort Mac the future premiums would have to be in the six figures for the next five years.

A greater concern is a disaster of this nature getting listed as an act of nature (God) and being an exclusion as terrorism is now.