I am sure you have all heard about the potential Terrorist Threats that have been announced in the U.S. As Sept. 11, comes upon us it is a time of remembering what was lost over a decade ago. Not only were many lives lost, but that impact this had on the United States, rippled through all countries with close relations to the U.S.
In Canada we saw our borders closed up, trading with the US took a sharp decline and in turn the markets took a massive hit.
Some may ask why I am writing about this today. Well with the potential for further disaster to be upon us, this can cause further damage to our all ready week economy, which will again affect the Markets. All the insurance companies invest in the Stock markets to be able to make profits, or in some cases break even.
If their is another shift in the markets this could again cause rate increases in your personal and business insurance to make up for the potential losses the insurance companies face with losses in the markets. Now before you jumped down the throats of the insurance companies - remember that they are heavily regulated by government. In Ontario the insurance companies are regulated in their actions and day to day operations by the Financial Services Commission of Ontario.
So please remember if there is a devastating loss and it affects the stock markets it will eventually hurt your insurance premiums!
Have a safe weekend, and lets hope that events in New York are not hampered by any terrorist activities.
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