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The impact of USD-CAD exchange rate on the Canadian insurance claims timeline

In our previous blog post we looked at the impact of the CAD-USD exchange rate on insurance policies. Specifically, the different ways this impacted trucking companies that frequently deliver to the U.S. In this blog post, we share insights on how the exchange rate impacts the claims timeline.

George Halkiotis, Executive Vice President of Claims at Northbridge Insurance emphasizes the impact fluctuating exchange rates have on claims. “The timeline between the date of the original accident and the date of settlement can vary and is impacted by a number of factors including:


  • jurisdictional laws and regulations

  • multiple parties/claimants

  • the type of loss you are dealing with, and

  • the circumstances around negligence.



“In cases involving litigation, it can take up to two years or more to settle from the date of notice. As the timeline to settlement extends, so does the risk of experiencing fluctuations in the exchange rate. A key factor is the exchange rate at the time of settlement. If the value of the Canadian Dollar has deteriorated, then the cost of paying that claim can be much higher.

“We are always working to resolve our claims for fair dollar as soon as we can, in order to keep costs, interest and as damages at a minimum. However, there are times when we are affected by unreasonable third party demands or when we take a hard line to defend our customers against frivolous allegations or allegations of negligence, when we feel our clients should be absolved from liability.

“We understand that exchange rates can erode or even have a reverse effect on policy limits at times. The exchange rate at the time of settlement is key. The timeline on a claim isn’t necessarily a factor on rate, but at times a factor on claim value severity.”

This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information.

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