VANCOUVER —
B.C.’s finance minister has told CTV News Vancouver legislation is on the way to address the skyrocketing strata insurance costs owners have been facing, but did not offer any details as to what exactly that will entail.
Carole James referenced the legislation in an emailed statement addressing a newly released interim report from the BC Financial Services Authority, which deemed the state of the provincial strata insurance market “unhealthy.”
The report, which was requested by the province, found over the past year, premiums have risen on average by about 40 per cent across B.C., and 50 per cent across Metro Vancouver, while deductibles have increased up to double and triple digits.
“Insurers are incurring losses mostly from minor claims (particularly those resulting from water damage) due to poor building maintenance practices and initial construction quality issues,” the report said, and added “there is not enough capacity in the strata insurance market to support future expected demand.”
Vice-president of the regulatory agency Frank Chong called it a complex issue with no easy solutions.
“We recognize that there is a tremendous amount of pressure exerted as a result of the increase in strata insurance,” Chong said, added the agency gets a lot of questions and complaints from the public. “We believe that obviously that this particular issue will not be going away immediately. There will be continued pressure over the medium term.”
According to the interim report, out of approximately 6000 buildings:
54 per cent had a premium increase of less than 30 per cent compared to the previous year
31 per cent saw increases of 30 to 50 per cent
Nine per cent experienced hikes of 50 to 100 per cent
Six per cent saw increases of over 100 per cent
In a statement, James called the rising costs a “serious issue,” and said the Financial Services Authority analysis is providing a “clearer picture” of the factors at play.
“It’s important to recognize that the dynamics driving these increases are playing out in the private insurance industry – government does not set insurance rates or regulate pricing,” James said. “We are reviewing the report now and will be bringing in legislation this summer as a first step to help tackle this problem.”
Abbotsford strata council president Mike Pauls saw a premium increase at his complex that went from just over $60,000 to into the hundreds of thousands.
“We do our due diligence to do all the right things, and put measures in place for safety and security, and to be claims free and still face a whopper of an increase in your insurance premium doesn’t seem very fair,” Pauls said, and noted his building is only a year and a half old. “Floors five through 10 in my building is seniors, assisted living. And we all know seniors are on fixed incomes, right. And how is that fair to them?”
Pauls would like to see caps on potential increases, especially for buildings with no claims.
“I think government needs to take a closer look at this and not leave it to the private sector,” he said.
The opposition called on the province to take “immediate action” to help strata owners, including a temporary tax break on the 4.4 per cent Insurance Premium tax on strata property.
In a press release, opposition critic for housing Todd Stone said the problem is getting worse.
“The government cannot delay action on this issue any longer,” Stone said. “It is time to see the government take real steps to improve this situation and provide much-needed relief for condo and townhome owners around the province.”
In February, Stone introduced a private members bill proposing changes to the Strata Property Act, including a measure to clarify what issues a strata or owner are responsible for.
The BC Financial Services Authority said it will be meeting with stakeholders over the next few months to gather input. A final report is expected sometime in the fall.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
