BC town faces potential reductions in commercial insurance rates
BC town faces potential reductions in commercial insurance rates | Insurance Business Canada
Insurance News
BC town faces potential reductions in commercial insurance rates
Adjustment expected following change in fire insurance grading
Insurance News
By
Terry Gangcuangco
Insurance premiums for businesses in Osoyoos might decrease over the next year or two following a recent review request by the local fire department for an updated fire insurance grading from the Fire Underwriters Survey (FUS).
The FUS provides essential data on public fire protection, which insurance companies use to assess risk and determine insurance rates.
According to former Osoyoos Fire Rescue (OFR) chief Corey Kortmeyer, the town’s Public Fire Protection Classification (PFPC) for commercial insurance has improved from grade seven to six out of 10 – one being the highest rating – as a result of the review.
The PFPC system evaluates a community’s ability to manage major fires in various types of buildings, including multi-family residential, commercial, industrial, and institutional properties.
In the case of Osoyoos, the only change in grading occurred for hydrant-protected commercial lines properties within 5 kilometers of the town’s fire station and 150 meters of a recognized hydrant on the Osoyoos water distribution system.
Kortmeyer said the change could potentially result in savings of 10-15%, but noted that it would be up to individual insurance companies to decide whether to pass those savings on to their customers. Any reductions in rates for commercial businesses are unlikely to be seen before 2025 or 2026.
Despite the uncertainty, Kortmeyer described the outcome as a positive development. “It is something that wasn’t there before, and by doing some hard work and pushing things forward, it actually made a bit of difference,” he said.
Meanwhile, the OFR has identified areas where further improvements could be made, providing the town’s council with data to inform decisions on future investments to potentially enhance ratings in residential or other categories.
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