Canadians Should Expect High Prices at the Pump through May
According to the Canadian Press, the Victoria Day long weekend may be more expensive for vacationers this year. "We're going to see gas prices jump around a little bit. But generally speaking, for the next month or so, we're going to see gas prices more or less going up," said Jason Toews, co-founder of the price-tracking website.
The gas price average in Canada is pinpointed at around $1.28 per litre currently by GasBuddy, which is the highest price Canadians have seen since the fall of 2008.
Vehicle based travel and the gas demand that comes with it will also increase prices this summer. High costs are directly related to the price of crude oil, which makes up 70 per cent of the cost of a litre.
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Canadians may feel frustrated at the exploding gas prices when the issue creating the spike is occurring half a world away. "A lot of people say 'We have so much crude oil here in Canada. Why don't we have cheap gas? Why don't we just sell it to ourselves?'" Toews said. "These companies who produce the crude oil are looking to maximize their profits. It's not a charity case. They're not here for the good of Canadians, per se."
Overall, Canadians should expect a continued price increase throughout the summer. How high gas prices will affect the Canadian economy is yet to be seen, but it can be speculated that consumers will be less inclined to drive as often as they currently do.
CB Insights: US Insurtechs Compete In A Now Global Market
In the first half of the year, insurtech companies around the world have raised US$7.4bn, nearly doubling their funding in Q2. According to Digital Insurance, insurtechs have raised US$4.8bn in Q2—an 89% increase in funding from Q1. But US firms are no longer the sole beneficiaries.
What Are the Stats?
Out of the 15 Q2 mega-rounds—those that top US$100mn—only eight included American firms. Pretty good, you might say. That’s over half! But US companies only made up 38% of the deals, which marks a 10% drop from Q1 and a 12% drop from 2020. Technically, therefore, US insurtechs are less influential than they’ve been in the past. But who says this is a bad development?
Despite my American citizenship, I’d argue that a more globally diverse insurance market is only for the best. Many of the world’s citizens who could most benefit from improved insurance services live outside of the States—and deserve local, tech-savvy services.
Why Does This Matter?
You’re always going to see the typical insurtech contenders from Western countries. For instance:
- German-based wefox: US$650mn Series C
- UK-based Bought By Many: US$350mn Series D
- US-based Collective Health: US$280mn Series F
But it’s critical that we address risk across the world. American insurtechs might be some of the most technologically skilled firms in the industry, but it’s not their first goal to address floods in Southeast Asia, crop destruction in China, and COVID complications in South Africa. That’s why we should celebrate that the recent Q2 round included insurtechs from 35 different countries.
According to CB Insights’ Q2 2021 Quarterly InsurTech Briefing, this was the first time that they’d observed insurtech activity in Botswana, Mali, Romania, Saudi Arabia, and Turkey. And ‘from a product, service, distribution, and underlying risk perspective, we—as a society and as an industry—are moving at an unprecedented speed’, says Dr. Andrew Johnston, Global Head of Willis Re InsurTech.
Just ask CB Insights. InsurTech value propositions have resonated with the world.