Latest news with #InsuranceBureauofCanada
Cision Canada
5 hours ago
- 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
5 hours ago
- 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
Cision Canada
9 hours ago
- Business
- Cision Canada
Insurance experts available to help Saskatchewan residents affected by wildfire
EDMONTON, AB, June 5, 2025 /CNW/ - Due to out-of-control wildfires in Saskatchewan, which have forced the evacuation of approximately 15,000 residents and prompted a provincewide state of emergency, Insurance Bureau of Canada (IBC) has deployed its Virtual Community Assistance Mobile Pavilion (V-CAMP) to provide insurance information to affected residents. Prolonged dry and warm conditions across much of the province have led to volatile fire conditions across northern Saskatchewan, with numerous large fires burning. Several large 'fires of note' have prompted evacuations of more than two dozen northern communities. Some homes, businesses, and cabins have been reported damaged or destroyed. "Our hearts go out to the individuals and families whose lives have been disrupted by these fires and who have lost property," said Aaron Sutherland, Vice-President, Pacific and Western, IBC. "We applaud all the first responders who have been working tirelessly to protect the affected communities. Rest assured that anyone whose property was damaged can contact their insurance representative when they are ready to start the claims process. Saskatchewan's home and business insurers are committed to protecting your tomorrow, by standing with you today." IBC is in close contact with provincial government and emergency management officials, as well as with municipal officials in the affected communities. This situation is changing rapidly. Insurers serve as "second responders" in the recovery period after catastrophe strikes. IBC's V-CAMP is staffed with trained insurance industry personnel at IBC's Consumer Information Centre at 1-844-2ask-IBC (1-844-227-5422) and [email protected] to help address consumers' general questions about their home, business or vehicle insurance policies. This includes questions about Additional Living Expenses for those who have been evacuated. Affected residents can also visit IBC's Wildfires & Insurance webpage to learn more about insurance and the various stages of the claims process. Information about the current forest fire danger, forest fire activity and fire restrictions across the province can be found on the Government of Saskatchewan's Emergencies and Response webpage. When the Smoke Clears . . . What's Covered? Home insurance policies cover damage caused by fire, even if the fire began on a neighbouring property, as long as the fire was not started intentionally by the policy holder. All standard home insurance policies cover additional living expenses (ALE). If you've been ordered by a civil or provincial authority to leave your home, keep the receipts for your living expenses (for example, hotel costs). Most homeowner's and tenant's insurance policies cover any reasonable additional living expenses for a specified period of time. Ask your insurance representative about the amount of living expenses you're entitled to claim. Tips for Starting the Claims Process Call your insurance representative as soon as possible. Most insurers have a 24-hour claims service. Be as detailed as possible when providing information. When it is safe to do so, list all damaged or destroyed items. If possible, assemble proofs of purchase, photos, receipts and warranties. Take photos of damage incurred and keep damaged items, unless they pose a health hazard. Keep all receipts related to cleanup and living expenses if you've been displaced. Ask your insurance representative about what coverage for expenses you may be entitled to and for what period of time. Seasonal or secondary residences When it is safe to do so, check any seasonal or secondary residences (e.g., cottages) and report any damage to your insurance representative as soon as possible. Policies for these properties may have different coverage or limits than a primary home insurance policy. Review your policy or check with your insurance professional to confirm your coverage. 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.
Cision Canada
29-05-2025
- Business
- Cision Canada
Insurance experts available to help Manitoba residents affected by wildfire
EDMONTON, AB, May 29, 2025 /CNW/ - Due to out-of-control wildfires in northern Manitoba, which have forced the evacuation of approximately 17,000 residents and prompted a provincewide state of emergency, Insurance Bureau of Canada (IBC) has deployed its Virtual Community Assistance Mobile Pavilion (V-CAMP) to provide insurance information to affected residents. "Our hearts go out to the individuals and families whose lives have been disrupted by these fires. We thank all the first responders and emergency officials who have been working so diligently to protect lives and property," said Aaron Sutherland, Vice-President, Pacific and Western, IBC. "The situation is extremely concerning, and we want to make sure those being evacuated from their homes can easily access the insurance supports they need at this difficult time. Manitoba's insurers are committed to protecting your tomorrow, by standing with you today." IBC is in close contact with provincial government and emergency management officials, as well as with municipal officials in the affected communities. This situation is changing rapidly. Insurers serve as "second responders" in the recovery period after catastrophe strikes. IBC's V-CAMP is staffed with trained insurance industry personnel at IBC's Consumer Information Centre at 1-844-2ask-IBC (1-844-227-5422) and [email protected] to help address consumers' general questions about their home, business or vehicle insurance policies. This includes questions about Additional Living Expenses for those who have been evacuated. Affected residents can also visit IBC's Wildfires & Insurance webpage to learn more about insurance and the various stages of the claims process. When the Smoke Clears . . . What's Covered? Home insurance policies cover damage caused by fire, even if the fire began on a neighbouring property, as long as the fire was not started intentionally by the policy holder. All standard home insurance policies cover additional living expenses (ALE). If you've been ordered by a civil or provincial authority to leave your home, keep the receipts for your living expenses (for example, hotel costs). Most homeowner's and tenant's insurance policies cover any reasonable additional living expenses for a specified period of time. Ask your insurance representative about the amount of living expenses you're entitled to claim. Tips for Starting the Claims Process Call your insurance representative as soon as possible. Most insurers have a 24-hour claims service. Be as detailed as possible when providing information. When it is safe to do so, list all damaged or destroyed items. If possible, assemble proofs of purchase, photos, receipts and warranties. Take photos of damage incurred and keep damaged items, unless they pose a health hazard. Keep all receipts related to cleanup and living expenses if you've been displaced. Ask your insurance representative about what coverage for expenses you may be entitled to and for what period of time. Seasonal or secondary residences When it is safe to do so, check any seasonal or secondary residences (e.g., cottages) and report any damage to your insurance representative as soon as possible. Policies for these properties may have different coverage or limits than a primary home insurance policy. Review your policy or check with your insurance professional to confirm your coverage. 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
29-05-2025
- Business
- Yahoo
Insurance experts available to help Manitoba residents affected by wildfire
Insurance Bureau of Canada offers helpline for affected residents EDMONTON, AB, May 29, 2025 /CNW/ - Due to out-of-control wildfires in northern Manitoba, which have forced the evacuation of approximately 17,000 residents and prompted a provincewide state of emergency, Insurance Bureau of Canada (IBC) has deployed its Virtual Community Assistance Mobile Pavilion (V-CAMP) to provide insurance information to affected residents. "Our hearts go out to the individuals and families whose lives have been disrupted by these fires. We thank all the first responders and emergency officials who have been working so diligently to protect lives and property," said Aaron Sutherland, Vice-President, Pacific and Western, IBC. "The situation is extremely concerning, and we want to make sure those being evacuated from their homes can easily access the insurance supports they need at this difficult time. Manitoba's insurers are committed to protecting your tomorrow, by standing with you today." IBC is in close contact with provincial government and emergency management officials, as well as with municipal officials in the affected communities. This situation is changing rapidly. Insurers serve as "second responders" in the recovery period after catastrophe strikes. IBC's V-CAMP is staffed with trained insurance industry personnel at IBC's Consumer Information Centre at 1-844-2ask-IBC (1-844-227-5422) and AskIBCWest@ to help address consumers' general questions about their home, business or vehicle insurance policies. This includes questions about Additional Living Expenses for those who have been evacuated. Affected residents can also visit IBC's Wildfires & Insurance webpage to learn more about insurance and the various stages of the claims process. When the Smoke Clears . . . What's Covered? Home insurance policies cover damage caused by fire, even if the fire began on a neighbouring property, as long as the fire was not started intentionally by the policy holder. All standard home insurance policies cover additional living expenses (ALE). If you've been ordered by a civil or provincial authority to leave your home, keep the receipts for your living expenses (for example, hotel costs). Most homeowner's and tenant's insurance policies cover any reasonable additional living expenses for a specified period of time. Ask your insurance representative about the amount of living expenses you're entitled to claim. Tips for Starting the Claims Process Call your insurance representative as soon as possible. Most insurers have a 24-hour claims service. Be as detailed as possible when providing information. When it is safe to do so, list all damaged or destroyed items. If possible, assemble proofs of purchase, photos, receipts and warranties. Take photos of damage incurred and keep damaged items, unless they pose a health hazard. Keep all receipts related to cleanup and living expenses if you've been displaced. Ask your insurance representative about what coverage for expenses you may be entitled to and for what period of time. Seasonal or secondary residences When it is safe to do so, check any seasonal or secondary residences (e.g., cottages) and report any damage to your insurance representative as soon as possible. Policies for these properties may have different coverage or limits than a primary home insurance policy. Review your policy or check with your insurance professional to confirm your coverage. 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 while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
