A new report finds auto insurers in Alberta are paying out more than they’re collecting.
This is concerning to the Insurance Bureau of Canada, which wonders how it could affect drivers’ premiums in the coming years.
It comes after the Alberta Superintendent of Insurance released its 2024 annual report. It highlights that the majority of auto insurers in the province were unprofitable.
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It notes insurers lost more than $1.2 billion on the sale of auto insurance in 2024, paying out more in claims and expenses than drivers paid in premiums.
The superintendent is forecasting that escalating claim costs will exceed the province’s Good Driver Rate Cap. The Insurance Bureau of Canada claims the cap is not sustainable.
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The province says it’s aware that numerous factors are putting pressure on the auto insurance market. It claims the new care-first model, which will be introduced in 2027, will lead to more stable and predictable rates.
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