Insurance Bureau of Canada has completed a review 119.2 million automobile insurance policies sold throughout Canada in the past 17 years. The IBC said Monday that the data confirms growth in claims costs outpaced premium growth for several years in every province, resulting in the recent growth in auto insurance premiums.
This is particularly the case with injury claims it says.
“As the official statistical agency, IBC has access to the most comprehensive pool of insurance data available,” said IBC chief economist Paul Kovacs. “We reviewed data for each of the last 17 years. Information available in this study is based on the largest sampling of data available.”
This premium growth study revealed that from 1996 until 2000, auto insurance prices were stable. In contrast, average premiums grew 9% in 2001, 15% in 2002 and currently, premiums are 20% higher than they were last year. “There was a lag, but the higher cost of claims has finally led to higher prices,” says Kovacs.
The analysis shows average premium increases of 19.8% from March 2002 to March 2003 in the six provinces in which private insurers operate. The provincial increases were:
- Ontario, 20.1%
- Alberta, 15.4%
- Nova Scotia, 23.4%
- New Brunswick, 27.5%
- Newfoundland, 25.2%
- PEI, 13.9%
http://www.newswire.ca/releases/June2003/16/c3581.html