How Location Impacts Insurance Industry in Canada

Just how Geography Influences Insurance Industry in Canada

By: Gia Nhi Long

College student #: 500208078

Professor: Steven Farber

Study course: Regional Examination of Canada

Course Code: GEO505-011

Time: November 21, 2010

Intro

Insurance is a form of risk management primarily used to control the risk of the contingent, doubtful loss. Insurance is defined as the equitable transfer of the likelihood of a loss, from one enterprise to another, in exchange for payment (Wikipedia). Insurance is important to everyone canada and also in the world. Insurance is always to ensure that everyone life/property is definitely protected via uncertain reduction. There are lots of component that can have an effect on insurance cost and supply in someway. The physical and man characteristics happen to be one of the elements. Canada is divided into half a dozen regions, every single region offers its feature that can be separate from other regions (Bone). Insurance in every region differs according with their characteristic. There are numerous kinds of insurance, these include: harvest insurance, avalanche insurance, automobile insurance, life insurance, and health insurance. Physical characteristic like climate transform can be one of the best impacts about insurance because if surges occur in Canada, they would ruin all the plants that have been growing by maqui berry farmers, thus, insurance can provide these kinds of farmers with protection towards the loss via these amazing events. Human being characteristic could also affects insurance because human being activities comparable to pollution will affect the health of man or woman who can lead to larger insurance rate in life/health insurance. There are many cultural tensions t different insurance rate for different people. These stress include youths and elders, sick and healthy citizens. These worries can significantly apply to car, and life insurance coverage. In this article, the impact of geography of Canada on insurance sector, and the faultlines that occur from insurance will be talked about. Human/Physical Geography

The greatest strategic menace facing the industry is definitely climate change. In present-day, global warming can be described as big issue in Canada and the universe, it does not simply affect mother nature but as very well as impact personal well being. As a result of personal health and normal phenomena, they both influence insurance. " Global warming causes changes in weather condition patterns and shifts the underlying likelihood of covered loss coming from floods, wind storms and other phenomena. Local climate change likewise affects pricing structures, arranging policies, solvency and corporate stability, as well as more gradual implications like elevated health problems. ” The rising cost by catastrophic occasions similar to changing weather habits, terrorist episodes pandemics will be primary worries could effect insurers' profits and capital (ERNST & YOUNG). " Present-day affects of weather conditions events about financial services happen to be caused generally by serious events. Variations in vulnerability are present, caused by location, population circulation, and countrywide wealth. (Berz)” Especially in Canada, some areas are cooler than other parts, hence, their climate will also be different. In Canada, the biggest insurance payout is related to catastrophic situations. Floods happen to be most common in British Columbia, Ontario, Quebec, and Maritimes (Sandink).

" Through the winter, the Arctic air masses generally dominate climate conditions in the Alpage, placing the location in an Arctic ‘deep freeze'. A combination of strong winds and sub-zero temperatures can produce blizzard-like weather. (Bone)” Droughts are routine and massive amounts are second common organic phenomenon inside the prairie ecosystem. In Central/Western Alberta, all-natural disasters just like hails, droughts, and surges could have great impact on farming, and insurance claim upon crops are incredibly high (Sandink).

The following bar graph demonstrates the physical and weather conditions related unfortunate occurances in 1960s to 1990s in Canada (Sandink).

As for man characteristics, we all create...

Offered: Financial Services. ” Insurance in a Climate of Change. PIER VELLINGA and EVAN GENERATORS. Web. 20 Nov. 2010..

Bone, Robert M. The Regional Location of Canada. 4th male impotence. Don Mills, Ont.: Oxford

UP, 08

12 August. 2005. Net. 10 Nov. 2010.

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