Chris Floyd | President , TW Insurance Brokers

As someone who appreciates transparency , I would like to communicate to our valued ARTA members the factors that contribute to the increasing home and auto insurance rates sweeping the province .

Industry-wide , home and auto insurance rates in Alberta have been showing a steady year-overyear increase since 2012 . Global News has reported that in many cases , rates in Alberta are twenty per cent or higher than the national average , leaving many auto and home owners just asking why .

Higher volumes of auto insurance claims coupled with ongoing natural catastrophic losses , are leading to a ‘ hard market .’ Hard markets are characterized by the following :

• higher insurance premiums across the industry ;

• stricter and more rigid underwriting criteria making buying a policy more difficult

• reduced capacity and less competition among insurance carriers .

Increasing Auto Insurance Rates in Alberta

Higher Repair Costs The average cost to repair an automobile is up by eighteen per cent from 2016 . The increasing complexity of vehicle technology , ranging from on-board computers to automated braking and blind-spot detection , as well as the lightweight materials used in vehicle manufacturing , all contribute to rising repair costs in the event of an insurance claim .

For example , if an insured were involved in a rear-end collision while driving a common SUV in 2010 , the insured would submit a claim to have the bumper repaired , which would require nineteen parts . Now , this individual would need to submit a claim for a repair that requires fortynine parts . The bumper of a common SUV in 2018 has proximity sensors , blind-spot monitors , back-up cameras , and Xenon or LED lights . Advanced technology in vehicles manufactured today has made repairs significantly more complex and costly .

More Distracted Driving Collisions There has been a significant increase in cases of distracted driving in Alberta , which has led to a consequent rise in the frequency of auto collision claims . From 2016 to 2018 , Alberta had a fifty-eight per cent increase in claims related to distracted driving — more than double the national average of twenty-three per cent . CTV reports that Alberta currently has the highest number of distracted driving related collision claims in the country .

Rise in Vehicle Theft CBC News reports that although Alberta comprises only eleven per cent of the national

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