Montreal, QC (Feb. 14, 2016) – Opta Information Intelligence (Opta), Canada’s leading provider of property intelligence and innovative technology solutions, is pleased to provide the Property and Casualty (“P&C”) industry with the latest update on property reconstruction costs across Canada.
Opta has found that the average Canadian reconstruction cost increase over the 2015 calendar year was 1.46%. Among the provinces, British Columbia stands out as having the highest increase at 2.07% over the year. Further analysis shows that B.C. experienced high increases across all housing sizes but especially in smaller homes. This was not the case in other provinces. Opta found CPI increases to be lowest in Québec with an average increase of 0.97%. This low increase was due primarily to the effect of very low increases in the Montréal area measured at only 0.37%. Prince Edward Island experienced higher increases than its Atlantic neighbours due to higher costs associated with island access combined with the comparatively lower population base. This effect held true in other smaller Canadian remote centres but in those cases, larger centres reduced that effect on the provincial average.
Through the use of iClarify™, Opta’s proprietary insurance valuation and validation tool, Opta analyzes residential reconstruction cost changes across Canada multiple times every year using contractor reconstruction estimates. These estimates are validated against actual total losses across Canada to ensure ongoing accuracy of these measurements across all major Canadian centres and housing sizes. Opta uses 86 cities across Canada that have been identified as “Centres of Influence” based on multiple factors including location, population, and general conditions. Data is compiled from over 300 licensed contractors and generates over 7750 data points annually.
To ensure that clients receive the most current, local, and accurate valuation costs through iClarify™, Opta conducts several other studies throughout the year leveraging information from sister companies, ClaimsPro and SCM Risk Management Services. With access to the greatest repositories of total loss records and inspection data nationwide, Opta leverages this unprecedented access to validate replacement costs, making iClarify™ the strongest and most accurate Canadian valuation source in the industry.
“Since the inception of iClarify™, we have been and remain committed to using Canadian total loss experience as iClarify’s™ key driver of valuations,” states Colin Smith, Senior Vice President Operations at Opta Information Intelligence. “Our dedicated team of valuation experts continuously analyzes replacement cost factors across Canada, further contributing to the ongoing accuracy of iClarify™ valuations.”
About Opta Information Intelligence
Opta Information Intelligence is Canada’s largest aggregator of property risk information and leading provider of property intelligence and innovative technology solutions for insurance and corporate industries. Opta helps you access, understand, and synthesize previously inaccessible information, turning it into intelligence that helps to discover and understand business risks. Visit www.optaintel.ca for more information.
Source: Opta Information Intelligence