Many Alberta insurers increase auto rates by 5 percent

Intact, Novex and SGI did not implement maximum allowed rate increase

In July 2012, the Alberta Automobile Insurance Rate Board (AIRB) announced it would permit insurance companies to increase premium levels for mandatory automobile insurance by up to 5%, effective November 1.

According to figures release by the Alberta Auto Insurance Rate Board (AIRB), many insurers in the province have opted to increase rates by the maximum-allowed 5%.

Read: IBC dispels myths around rising Ontario auto premiums

Intact Insurance chose to raise rates by only 1.5% and its subsidiary, Novex Insurance Company, increased its basic premium by only 1.2%. The insurer had the largest market share in the province in 2011, with 16.2%.

SGI Canada, which had 0.6% of the market share in 2011, also chose not to implement the full 5% increase. It raised its rates by only 3.4%.

Read:Top 5 auto insurance fraud stories of 2012

Wawanesa Mutual Insurance Company, the second largest player in the market with 12.6% market share in 2011, implemented the 5% increase, as did TD Insurance subsidiary, Security National Insurance Company, which had 10.5% of the market share in 2011.

In the 4th quarter of 2012, the AIRB also approved an application by Protective Insurance Company to adopt 2012 IAO rating programs for commercial and interurban vehicles as well as applications by RBC General Insurance to revise the rule governing substitution of vehicle or addition of coverage for private passenger vehicles as well as private passenger miscellaneous classes of motorcycles.

A TC Media site,
Business Solutions

TC Media

Transcontinental Media G.P
1110 René-Lévesque Bldv W.
Montréal, QC H3B 4X9
(514) 392-9000