With huge hikes in insurance premiums, Chatham-Kent councillors and staff have expressed frustration with the runaway costs.
At their meeting held earlier this week council approved the 2023 quoted premium for the municipality’s various insurance coverages. The quote from Intact Public Entities is for $2.6 million, which is a 33.1 percent increase from the 2022 premium. Last year, premiums went up a staggering 39 percent.
Since 2018 Chatham-Kent’s insurance premiums have increased 115 percent.
Dave Taylor, Chatham-Kent’s director of legal services, said there are not many providers in the municipal insurance world, with only a couple willing to provide the municipality with a quote.
In an effort to try and save costs, the municipality will have the policy for the full year but have the ability to do a three-month prorated policy amount, which will allow Chatham-Kent to change providers after three months if they find an alternative provider that will save the municipality money.
Coun. Steve Pinsonneault said the way rates have increased has been getting out-of-hand.
“We are insurance broke now. It’s a reality and I don’t really know how you get it down,” Pinsonneault said.
The problem with increased insurance premiums is not exclusive to Chatham-Kent, as many municipalities are in the same boat, Chatham-Kent CAO Michael Duben said. He said it’s not only a cost factor but an accessibility issue. Duben suggested that it’s an issue that should be brought up and advocated for to the Association of Municipalities of Ontario (AMO).