Could Skyrocketing Costs of Insurance Bankrupt a Condo Corporation?
The inspiration for the project came from watching and reading several news items that identified the skyrocketing costs of insurance and the associated deductibles that multiple condominium corporations were experiencing within the Province of Alberta. Upon further investigation of the issue, it was discovered that the ever-increasing costs of insurance, if left unabated, could have a calamitous effect on a condominium corporation and its stakeholders. The research focused on risk identification that included an Impact component and a Likelihood component used to calculate an overall risk score for each identified hazard to a condominium corporation. This was done by developing a risk matrix that scored Risk Impact versus Likelihood of Occurrence that forms the basis of a Risk Assessment for a condominium corporation. Potential risks were identified through interviews with industry stakeholders that included: the Insurance Bureau of Canada, the Insurance Institute of Alberta, a commercial insurance broker, condominium legal experts, and the Government of Alberta (Service Alberta, Treasury and Finance Board), property management, and a condominium corporation. The findings suggest that all condominium industry stakeholders must proactively work with government to find an equitable solution that addresses the needs of all stakeholders. This needs to be done with some urgency to prevent a looming fiscal crisis within the condominium industry.
Presented in absentia on April 27, 2020 at "Student Research Day" at MacEwan University in Edmonton, Alberta. (Conference cancelled)
Faculty Mentor: Chris Hancock