OTTAWA, April 26, 2023 (GLOBE NEWSWIRE) — The Canadian Institute of Actuaries (CIA) has released a new policy statement that clarifies the risks associated with condominiums and provides recommendations for owners, condominium association boards and legislators to protect the sustainability of condominium infrastructure in Canada.

title Taken from the condominium infrastructurethe statement emphasizes the importance of repairing, replacing and renewing condominium common areas such as roofs, swimming pools, elevators and parking lots, as well as having a solid emergency fund.

For many Canadians, owning a home is the biggest investment of their lives. It is important that all parties involved understand the value of this asset and the risks involved. By working together and taking proactive steps, we can ensure the sustainability of the country’s condominium infrastructure,” said Jean-SbastienCt, FCIA and co-author of the statement.

To protect the value of this infrastructure, the statement identifies several risks and recommendations, relating for example to the impact of climate change on buildings, financial management by the board of condominium associations, and interest rates and inflation.

The statement also underscores the need for an education system to keep boards and owners abreast of insurance requirements, laws, finances and other condominium-related issues.

Condo owners need to understand that this type of investment means sharing the risk with others beyond their own unit. They need to take the initiative to learn about their condominium company’s financial health, learn about their community and speak to their board of directors, says HenryChio, FCIA and co-author of the statement.

These ideas can also have broader application as they relate to public infrastructure (e.g. public buildings, roads, bridges and water supplies) the maintenance of which falls under all levels of government.

Ultimately, owners, buyers, governments, local authorities, condominium managers, board members and other stakeholders should better understand the risks associated with condominiums in order to adequately anticipate and mitigate them, explains John Nguyen, co-author of the statement. More sustained government intervention is needed to adequately assess the realistic future costs of maintaining and repairing this aging infrastructure.

Download the statement French or in English.

media contact

josegonthier
managers, language services and public affairs
Canadian Institute for Actuaries
[email protected]
613-236-8196, ext. 106
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I’Canadian Institute for Actuaries (CIA) is the qualifying and governing body for the profession of actuary in Canada. We develop and maintain rigorous standards, share our risk management expertise and advance actuarial science to improve the lives of people in Canada and around the world. Our 6,000+ members use their knowledge of mathematics, statistics, data analysis and economics to provide the highest quality services and advice to help Canadian people and organizations face their future with complete confidence.

Communiqué forwarded April 26, 2023 11:30 am and distributed by: