VICTORIA (NEWS 1130) — Following a June report that showed B.C. strata insurance premiums have risen by about 40 per cent on a year-over-year basis, the province is announcing some changes.
The Ministry of Finance announced changes to B.C.’s Financial Institutions Act Sunday.
Starting immediately the government is banning referral fees that are charged between insurers and property managers. Insurance agents will be required to disclose their commission amount, or face fines.
Effective November 1st, insurance agents must provide a 30-day notice to strata councils of their intention to not renew an insurance policy – giving stratas a heads up to seek other insurance options.
“These changes will bring further transparency to the strata insurance market and help strata corporations maintain their financial sustainability by providing them the information they need to make informed decisions about their insurance needs,” reads a release from the Ministry of Finance.
A government-commissioned report released by the B.C. Financial Services Authority said the insurance market isn’t healthy for about 1.5 million people living in condos, townhouses and other similar properties in the province.