Ontario couple see insurance premium surge following postal code change

Insurance Business America | April 23, 2019

Ontario couple see insurance premium surge following postal code change
A couple in Ontario suddenly saw their insurance premiums skyrocket after their postal code was changed. Christine and David Pindar of Oshawa, Ontario live in a rural part of the city, which meant their home and auto insurance premiums were originally lower than in urban areas. Last summer, Canada Post notified them that the last three digits of their postal code would be changing. The Crown corporation explained to CTV News that the change was because the Pindars’ home is one of about 500 in the Oshawa area that had to be reassigned new codes to accommodate new postal routes. When Christine Pindar told her insurer Allstate Insurance Company of Canada about the change, the company suddenly bumped up her insurance expenses. Her home premium surged by 37%, and the premiums she and her husband pay for their three cars increased by about 10%. According to Christine, the increases totalled approximately an additional $600 per year – something she calls “a slap in the face for no reason.” She also found out after crunching the numbers that Allstate believes it would cost the Pindars more to replace their house in the event it was destroyed – not just because of inflation, but also due to the new postal code.

Spotlight

The insurance industry is undergoing a fundamental transformation. Several disruptive factors have given rise to new players with disruptive business models. This short video by Strategy& (PwC’s strategy consulting team) looks at how insurance players should react to this major shift. The future of the insurance industry will be shaped by players who have the courage to commit to an identity based on how they create value for their customers and build the few differentiating capabilities that will allow them to deliver on that value better than anyone else.

Spotlight

The insurance industry is undergoing a fundamental transformation. Several disruptive factors have given rise to new players with disruptive business models. This short video by Strategy& (PwC’s strategy consulting team) looks at how insurance players should react to this major shift. The future of the insurance industry will be shaped by players who have the courage to commit to an identity based on how they create value for their customers and build the few differentiating capabilities that will allow them to deliver on that value better than anyone else.

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