Insurance is a Continuing Process, Not a Once-A-Year Routine

Condo insurance has always been one of the most complex and scrutinized line items in a condominium corporation’s budget, driven by rising claims costs, reduced market capacity, regulatory pressure, and heightened exposure to climate, liability, and operational risks. For condominium boards and property managers, the key question is no longer “How do we renew our insurance?” but rather, “How do we ensure our insurance spend delivers real, long-term value?” From an insurance broker’s perspective, this shift requires a move away from transactional renewal cycles toward a strategic, value-based approach to insurance procurement.

The key to this process rests in the word “strategic.” Strategic procurement is fast becoming the only way to approach insurance renewals and should be considered a recurring business practice that is a structured, data-driven approach to getting the best value, not the best price.

Under strategic sourcing, insurance renewals undertake an all-encompassing view of the market, incorporating cost, coverage, service levels, previous claims history, data such as maintenance records, water-loss prevention strategies, broker history and previous claims to map out a long-term plan to provide the best options and service to the board.

How to Develop a Strategic Sourcing Plan

The question I hear from many condo managers and boards is how do I set up a strategic sourcing program? Starting out can seem a bit intimidating when you may not have the bench strength, but, as with everything, a methodical approach can pay off substantially over the long term. It is also important to engage with a trusted insurance broker who can provide invaluable assistance in this process.

At the outset, your board, working with your insurance broker, needs to conduct a market assessment and identify the corporation’s needs and goals, weighing which policies are being considered, what limitations may exist, any threats you see on the horizon, and who needs to be involved in the process.

Next steps include reviewing the corporation’s claims history, what is currently spent on insurance, along with exposure in the market and problems or gaps that exist. If you don’t have a broker that you already work with, you’ll also need to do some research on the insurance market itself, including any companies and brokers that have a track record around condo insurance and whether they have the capacity to handle your facility. Also, ask for references for these insurance companies and follow up with them.

Savings Can Be Immediate, But Fade if Not Managed Effectively

Once you’ve got this far, you need a plan to evaluate proposals. You can develop a simple matrix that considers the insurance brokerage on a range of topics, from coverage, pricing, deductibles, customer service, claims management, and market feedback. Your goal is to be prepared for any situation and avoid surprises that could leave you uncovered in the event of a claim.

My experience shows that many corporations can realize significant savings when applying strategic sourcing, but that comes with a caveat. A detailed review identifies what I call the low-hanging fruit, the easy savings, the inefficient spending, duplicate coverage and poorly constructed contracts as some limited examples.

Value in condo insurance is achieved through informed decision-making, proactive risk governance, and disciplined procurement practices. Boards and property managers who adopt a strategic sourcing mindset are better positioned to stabilize premiums over time, secure more sustainable coverage, and demonstrate prudent management when going to market for condo insurance. Embedding strategic sourcing into daily decision-making delivers ongoing savings and long-term peace of mind.<

Sandy Fantino, R.I.B. (Ont.) is a Vice President, Client Executive & Team Leader for the BFL CANADA Realty Division with over 13 years of insurance industry experience. Her focus is finding the best insurance solutions for condominium corporations and along with her team, she prides herself on professionalism and service to her clients.

BFL CANADA Risk and Insurance Services Inc. is one of the largest employee-owned and operated commercial insurance brokerage and consulting services firms in Canada. Our Realty Division, with a team of over 250 real estate professionals located in 27 cities across the country, understands the risks faced by all types of properties, from condo corporations to apartments, commercial condominiums, and bare land properties. To learn more about us and what
we do, visit www.bflcanada.ca/realty-insurance-services.

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