Members sheltered by RCAIC as global insurers hike premiums The RCA Indemnity Corporation (RCAIC) was founded seven years ago to protect roofing contractor members from a predatory insurance industry that viewed roofers as a high-risk cash cow. It was not uncommon for even
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major BC roofing contractors with low claim histories to be hit with premium increases of 1,000 percent, as private insurers tried to cover losses in the investment markets. Some BC roofing contractors
were even denied as a whole had insured losses of insurance, even more than $50 billion in just the though such coverage first four months of 2011. In was often mandatory in Canada, insurers lost more than the bidding process and half a billion dollars in the third having valid liability quarter alone. insurance is a “Several carriers requirement of have stated their need “RCAIC reduced RCABC. premiums by 25 for increased rates,” The RCAIC, 100 percent last year Lockton states. percent owned by the Lloyd’s of London and will hold RCABC, was the first insurer Hiscox and rates in 2012.” Captive insurance Munich Re, the world’s company created by a largest reinsurer, has roofing association. already warned of hefty hikes in Today about 50 percent of premiums, according to a report in RCABC members are covered by the Guardian newspaper. RCAIC, but others may be looking Rose, an insurance veteran, to sign on next year because noted that some major insurers private insurance companies began offering low rates to take appear poised to increase market share in the past few years. premiums on some lines of But, he warned, “when the market business. changes, they will put the screws to In comparison, RCAIC reduced them again.” its effective premiums RCABC members covered by by 25 percent last RCAIC can rest easy, however. year and will hold RCAIC is dedicated to providing rates in 2012, long-term, stable and economical according to Don liability insurance coverage Rose of Shaw matched to the general and unique Sabey Insurance requirements of the members of the Brokers, who manages RCAIC. RCABC. Its insurance rates are not A report from Lockton Cos. LLC dictated by global disasters or the warns, “insurance rates for performance of the stock market. construction contractors are on the “The biggest difference with rise.” Lockton notes that losses on RCAIC and other insurers is we are such disasters as Japan’s tsunami, owned by roofers and we are there flooding in Thailand and Australia, to look after them in the event of a Hurricane Irene and tornadoes in loss. Normal insurance companies the U.S. have combined with a are there to protect their global economic crisis to hammer shareholders. We are here to the insurance industry. The industry protect our roofers,” Rose said. ■
WINTER 2011-12
Soprema expands Chilliwack plant CHILLIWACK – Soprema Inc, one of the world’s leading manufacturers of waterproof roofing products, is expanding its Chilliwack plant after 11 years of operation in the Fraser Valley community. Soprema will build a second production plant on the same property of its current operation on Yale Road West at the Chilliwack Business Estates. “After a relatively quiet period of more than three years of industrial development, it is hoped that this investment – a vote of confidence in Chilliwack, will echo Soprema’s beginnings during the last economic downturn,” site director Paul Boileau said in a press release. Boileau said the Chilliwack expansion will mean a small increase in Soprema’s current workforce, now numbering about 40 people. In 2011, for the second year in a row, the Soprema plant in Chilliwack was the company’s topranked production facility out of 14 sister plants in the U.S. and Europe. Boileau also added that the Chilliwack plant became the first COR-certified goods manufacturing plant in BC. ■
ROOFING BC