Latest news with #AaronSutherland
CTV News
24-06-2025
- Automotive
- CTV News
Alberta's Care-First auto insurance could cost drivers more: IBC
The Insurance Bureau of Canada says Alberta's Care-First plan is in desperate need of changes if it's expected to help reduce costs and improve care. (File) Auto insurance premiums could increase for Albertans under the province's new Care-First system, says the Insurance Bureau of Canada (IBC). The company says it's reviewed a report from consulting firm MNP that found the maintaining the ability of drivers to sue other drivers in an accident would add $136 in annual premiums. IBC says it wants the Alberta government to resist pressure to keep this ability in the new system. 'Litigation in Alberta's auto insurance system creates significant costs for Alberta drivers. Removing this, to improve affordability and care, is the main reason the government decided to transition to its Care-First model,' said Aaron Sutherland, IBC's Pacific and Western vice-president in a news release. 'The provincial government designs and mandates the auto insurance products that insurers must sell. No other province with a care-based system permits the ability to sue as envisioned in Alberta because of the significant costs it adds for drivers, while doing nothing to improve care for those injured in collisions.' IBC says legal costs are increasing by 9.7 per cent and benefit costs are increasing by 11.9 per cent – much faster than the government's 7.5 per cent auto insurance cap can handle. With higher repair costs, inflation and tariffs, the inclusion of tort access in the Care-First model could risk its failure, IBC says. 'The Alberta government is trying to deliver significant savings under the new system, but current auto insurance rates are under tremendous pressure,' said Sutherland. 'The insurance industry supports the government's goal of making auto insurance more affordable for Alberta drivers. But to do that, a significant course correction is needed.' The final look of Alberta's Care-First model hasn't been announced. The system is expected to come into effect in approximately 18 months.
Cision Canada
24-06-2025
- Automotive
- Cision Canada
Report finds including limited right to sue in new Alberta auto insurance model could cost drivers up to $136 annually
EDMONTON, ON, June 24, 2025 /CNW/ - A new analysis from consulting firm MNP finds that the government's intention to maintain the ability to sue in Alberta's Care-First auto insurance model could add up to $136 to required premiums annually. In light of the findings, Insurance Bureau of Canada (IBC) is urging the government to resist pressure to keep tort access in the new system and instead stay focused on ensuring victims receive the highest level of care to support their recovery. "Litigation in Alberta's auto insurance system creates significant costs for Alberta drivers. Removing this, to improve affordability and care, is the main reason the government decided to transition to its Care-First model," said Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC). "The provincial government designs and mandates the auto insurance products that insurers must sell. No other province with a care-based system permits the ability to sue as envisioned in Alberta because of the significant costs it adds for drivers, while doing nothing to improve care for those injured in collisions." As the Alberta government moves forward with the final design of its new Care-First auto insurance system, it has indicated that those injured in collisions will retain the ability to sue when the at-fault driver is guilty of select Criminal Code and Traffic Safety Act violations, as well as to recover out-of-pocket expenses beyond what is covered by their own insurance policy. IBC commissioned MNP to explore the impact this would have on required premiums. The firm's findings can be found here. After years of escalating legal costs and government-imposed rate interventions, Alberta's auto insurance market is in crisis. Soaring repair costs, inflation and tariffs are only adding to the pressure. Now, with the government's intention to allow tort access to continue as a cost pressure, the success of Alberta's Care-First model is at risk—eroding the savings that drivers could see when the new system comes into effect in 18 months. "Drivers deserve an auto insurance system that they can count on when they need it," added Sutherland. "IBC and its members are eager to work with the government to stabilize the system today and ensure the new system brings drivers savings and the access to the best medical benefits so that they can recover." The Alberta government's Automobile Insurance Rate Board (AIRB) recently published new data on cost pressures impacting driver premiums over the next year, all of which are growing well in excess of the current 7.5% auto insurance rate cap: Legal costs are increasing 9.7% Accident benefit costs are increasing 11.9% Over the last year, costs for vehicle damage coverages were projected to increase by more than 15%. The AIRB also highlighted that last year auto insurers lost 20 cents for every dollar sold in premiums due to the government's ongoing rate cap. This is creating significant strain on the availability of coverage for drivers today and on the ability of the Care-First system to deliver savings for drivers in the future. "The Alberta government is trying to deliver significant savings under the new system, but current auto insurance rates are under tremendous pressure," said Sutherland. "The insurance industry supports the government's goal of making auto insurance more affordable for Alberta drivers. But to do that, a significant course correction is needed." About Insurance Bureau of Canada Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up the vast majority of Canada's highly competitive property and casualty (P&C) insurance market. As the leading advocate for Canada's private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow. IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses. For media releases, IN Focus articles, or to book an interview with an IBC representative, visit Follow us on LinkedIn, X and Instagram, and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC. We're here to help.
Yahoo
24-06-2025
- Automotive
- Yahoo
Report finds including limited right to sue in new Alberta auto insurance model could cost drivers up to $136 annually
Province's Care-First system unlikely to deliver premium savings for drivers unless changes are made EDMONTON, ON, June 24, 2025 /CNW/ - A new analysis from consulting firm MNP finds that the government's intention to maintain the ability to sue in Alberta's Care-First auto insurance model could add up to $136 to required premiums annually. In light of the findings, Insurance Bureau of Canada (IBC) is urging the government to resist pressure to keep tort access in the new system and instead stay focused on ensuring victims receive the highest level of care to support their recovery. "Litigation in Alberta's auto insurance system creates significant costs for Alberta drivers. Removing this, to improve affordability and care, is the main reason the government decided to transition to its Care-First model," said Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC). "The provincial government designs and mandates the auto insurance products that insurers must sell. No other province with a care-based system permits the ability to sue as envisioned in Alberta because of the significant costs it adds for drivers, while doing nothing to improve care for those injured in collisions." As the Alberta government moves forward with the final design of its new Care-First auto insurance system, it has indicated that those injured in collisions will retain the ability to sue when the at-fault driver is guilty of select Criminal Code and Traffic Safety Act violations, as well as to recover out-of-pocket expenses beyond what is covered by their own insurance policy. IBC commissioned MNP to explore the impact this would have on required premiums. The firm's findings can be found here. After years of escalating legal costs and government-imposed rate interventions, Alberta's auto insurance market is in crisis. Soaring repair costs, inflation and tariffs are only adding to the pressure. Now, with the government's intention to allow tort access to continue as a cost pressure, the success of Alberta's Care-First model is at risk—eroding the savings that drivers could see when the new system comes into effect in 18 months. "Drivers deserve an auto insurance system that they can count on when they need it," added Sutherland. "IBC and its members are eager to work with the government to stabilize the system today and ensure the new system brings drivers savings and the access to the best medical benefits so that they can recover." The Alberta government's Automobile Insurance Rate Board (AIRB) recently published new data on cost pressures impacting driver premiums over the next year, all of which are growing well in excess of the current 7.5% auto insurance rate cap: Legal costs are increasing 9.7% Accident benefit costs are increasing 11.9% Over the last year, costs for vehicle damage coverages were projected to increase by more than 15%. The AIRB also highlighted that last year auto insurers lost 20 cents for every dollar sold in premiums due to the government's ongoing rate cap. This is creating significant strain on the availability of coverage for drivers today and on the ability of the Care-First system to deliver savings for drivers in the future. "The Alberta government is trying to deliver significant savings under the new system, but current auto insurance rates are under tremendous pressure," said Sutherland. "The insurance industry supports the government's goal of making auto insurance more affordable for Alberta drivers. But to do that, a significant course correction is needed." About Insurance Bureau of Canada Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up the vast majority of Canada's highly competitive property and casualty (P&C) insurance market. As the leading advocate for Canada's private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow. IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses. For media releases, IN Focus articles, or to book an interview with an IBC representative, visit Follow us on LinkedIn, X and Instagram, and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC. We're here to help. SOURCE Insurance Bureau of Canada View original content to download multimedia:
Cision Canada
05-06-2025
- Automotive
- Cision Canada
Truth About Tariffs: US trade dispute adding costs and straining availability of insurance coverage for Alberta drivers
Insurance Bureau of Canada sounds alarm as tariff action strains auto insurance market due to rate cap EDMONTON, AB, June 5, 2025 /CNW/ - The economic impact of the U.S. trade war is adding further strain to Alberta's embattled auto insurance market, prompting Insurance Bureau of Canada (IBC) to issue a warning to government and consumers to brace for additional challenges in the auto insurance market unless the current rate cap is eliminated. IBC recently commissioned Deloitte to undertake an analysis on the impacts of tariffs on the property and casualty industry. Deloitte found that 25% economy-wide tariffs imposed by the United States and reciprocated by Canada would increase the price of new vehicles and replacement parts by up to 10.9% for most insurers. While such tariffs have only been partially implemented, when changes in auto sector production patterns and other factors are also considered, the impact on insurance premiums for Alberta drivers could be up to 5%. Several areas in the auto sector have been negatively affected by tariffs, increasing the cost of vehicle repairs and replacements and straining supply chains. The negative effects of tariffs include: U.S. tariffs of 25% on Canadian steel and aluminum went into effect on March 12, and were raised to 50% on June 3. This is raising the cost of new vehicles and auto parts. Canadian counter-tariffs of 25% on non-CUSMA-compliant vehicles imported from the United States are increasing the cost of one-third of imported vehicles. Auto manufacturers have begun to pause, cancel or close the expansion of their Canadian operations, placing further strain on vehicle repair and replacement supply chains and adding additional cost pressures. "There is a lot of confusion surrounding tariffs, but the reality is they are here and are adding significant cost pressures to vehicle repairs and replacements that were completely unforeseen when the government extended the auto insurance rate cap last fall," said Aaron Sutherland, Vice-President, Pacific and Western, IBC. "The current 'good driver' rate cap does not reflect these new cost pressures. Unless insures are able to account for the impact of tariffs and other growing costs in their rates, they may be forced to further reduce the availability of coverage for drivers to remain financially viable." Even without contemplating the impact of tariffs, the Alberta government's Auto Insurance Rate Board (AIRB) recently published benchmark loss trends to be used by insurers in new rate filings, many of which are in excess of the current rate cap. The AIRB's latest Semi-Annual Review suggests that over the next year: Bodily injury (legal) costs will grow an average of 9.1%; Accident benefits (medical/rehab/income replacement) costs will grow an average of 5.5%; and The cost of vehicle damage claims will grow by approximately 10% "New cost pressures created by the trade dispute with the United States are piling on top of other cost pressures in the auto insurance system and creating new challenges for insurers who are paying out more money in claims than they take in through premiums," said Sutherland. "This situation is unsustainable, and the province must act and end the rate cap before further damage is caused." Alberta's insurers have been subject to a rate cap for over three years. This is the longest period of government interference in the auto insurance market in Canadian history. As a result of this rate cap, in 2024, Alberta auto insurers paid out $1.17 in claims and other expenses for every $1 they earned in premiums. About Insurance Bureau of Canada Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up the vast majority of Canada's highly competitive property and casualty (P&C) insurance market. As the leading advocate for Canada's private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow. IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses. For media releases, IN Focus articles, or to book an interview with an IBC representative, visit Follow us on LinkedIn, X and Instagram, and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC. We're here to help.
Yahoo
05-06-2025
- Automotive
- Yahoo
Truth About Tariffs: US trade dispute adding costs and straining availability of insurance coverage for Alberta drivers
Insurance Bureau of Canada sounds alarm as tariff action strains auto insurance market due to rate cap EDMONTON, AB, June 5, 2025 /CNW/ - The economic impact of the U.S. trade war is adding further strain to Alberta's embattled auto insurance market, prompting Insurance Bureau of Canada (IBC) to issue a warning to government and consumers to brace for additional challenges in the auto insurance market unless the current rate cap is eliminated. IBC recently commissioned Deloitte to undertake an analysis on the impacts of tariffs on the property and casualty industry. Deloitte found that 25% economy-wide tariffs imposed by the United States and reciprocated by Canada would increase the price of new vehicles and replacement parts by up to 10.9% for most insurers. While such tariffs have only been partially implemented, when changes in auto sector production patterns and other factors are also considered, the impact on insurance premiums for Alberta drivers could be up to 5%. Several areas in the auto sector have been negatively affected by tariffs, increasing the cost of vehicle repairs and replacements and straining supply chains. The negative effects of tariffs include: U.S. tariffs of 25% on Canadian steel and aluminum went into effect on March 12, and were raised to 50% on June 3. This is raising the cost of new vehicles and auto parts. Canadian counter-tariffs of 25% on non-CUSMA-compliant vehicles imported from the United States are increasing the cost of one-third of imported vehicles. Auto manufacturers have begun to pause, cancel or close the expansion of their Canadian operations, placing further strain on vehicle repair and replacement supply chains and adding additional cost pressures. "There is a lot of confusion surrounding tariffs, but the reality is they are here and are adding significant cost pressures to vehicle repairs and replacements that were completely unforeseen when the government extended the auto insurance rate cap last fall," said Aaron Sutherland, Vice-President, Pacific and Western, IBC. "The current 'good driver' rate cap does not reflect these new cost pressures. Unless insures are able to account for the impact of tariffs and other growing costs in their rates, they may be forced to further reduce the availability of coverage for drivers to remain financially viable." Even without contemplating the impact of tariffs, the Alberta government's Auto Insurance Rate Board (AIRB) recently published benchmark loss trends to be used by insurers in new rate filings, many of which are in excess of the current rate cap. The AIRB's latest Semi-Annual Review suggests that over the next year: Bodily injury (legal) costs will grow an average of 9.1%; Accident benefits (medical/rehab/income replacement) costs will grow an average of 5.5%; and The cost of vehicle damage claims will grow by approximately 10% "New cost pressures created by the trade dispute with the United States are piling on top of other cost pressures in the auto insurance system and creating new challenges for insurers who are paying out more money in claims than they take in through premiums," said Sutherland. "This situation is unsustainable, and the province must act and end the rate cap before further damage is caused." Alberta's insurers have been subject to a rate cap for over three years. This is the longest period of government interference in the auto insurance market in Canadian history. As a result of this rate cap, in 2024, Alberta auto insurers paid out $1.17 in claims and other expenses for every $1 they earned in premiums. About Insurance Bureau of Canada Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up the vast majority of Canada's highly competitive property and casualty (P&C) insurance market. As the leading advocate for Canada's private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow. IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses. For media releases, IN Focus articles, or to book an interview with an IBC representative, visit Follow us on LinkedIn, X and Instagram, and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC. We're here to help. SOURCE Insurance Bureau of Canada View original content to download multimedia: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
