Alberta Insurance Rates Continue to Rise After Fort McMurray Fires

Alberta will see insurance rates continue to rise following what is becoming a trend of costly natural disasters.

Financial Post writes that insurance rates in Alberta increased after the fires in Fort McMurray because there are more catastrophic losses claimed in Alberta than in other provinces. The fires are on track to be the most expensive insurance even in Canadian history, with claim totals being between $2 and $6 billion. These numbers far exceed the Calgary floods and the Quebec ice storm, which previously held the title for most costly insurance event. Read the original article here.

Taking a look at the last quarter of 2016, and the first quarter of 2017, the Alberta Insurance Rate Board has continued to approve increases to basic coverage.

Looking at the latest filing, the AIRB states “The approved rate change reflects the total change in premiums collected by the insurer for all drivers that they insure. For basic coverage it includes third party liability and accident benefits coverage and for additional coverage it includes collision, all perils, comprehensive, specified perils coverage and underinsured motorist coverage. The approved rate change does not reflect how an individual’s insurance premium may change as a result of the insurer’s rate filing, but reflects the average rate change for all policyholders who are insured with the insurer.”

To see if your Insurance provider has been affected by an increase, check out the latest AIRB filing.