Is there a wave of higher insurance premiums coming?

LONDON, ON. — Your insurance premium take a little dip in 2011? Enjoy it while you can. It’s headed the other way in 2012.

In a report on the state of the Canadian Insurance Market prepared by Marsh Canada recently, Marsh states that a confluence of events across the globe — ranging from a serious fire in Slave Lake AB, a tornado that ripped through Goderich, ON and to the tsunami in Japan — will lead to a ratcheting up of insurance rates in 2012.

Insurers, the report says, “are beginning to take a more disciplined approach to underwriting,” which is likely to drive rates up later in the year.

And there’s more lousy news. “Economic conditions in North America and Europe, and a possible economic slowdown in China are creating new uncertainties for the manufacturing industry. However, overall production across most areas showed minimal increases in the second half of 2011, a trend which looks likely to continue into 2012.”

The Canadian Transportation Equipment Association (CTEA) issued the alert to its members in the May newsletter, and suggests that members minimize the increase in premiums by taking advantage of group buying power. CTEA administers such a program for its own members, via Marsh Canada.