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Auto Insurance Pricing

Concerns over auto insurance rates have been at the forefront in recent months. Accordingly, the CIA created the Task Force on Auto Insurance Issues to study this matter and work to substitute facts for impressions.

The task force report offers an overview of comparative average claim costs among provinces, and describes the actuary's role in determining premium rates.

We think it is important to understand what drives auto insurance premium levels. Often the only comparison of these rates is on the basis of premium levels. We believe a more appropriate comparison lies with an examination of the largest cost component of auto insurance systems: the cost of claims.

We believe this report will contribute to an informed debate on auto insurance costs by providing a clearer understanding of the role of claims costs in setting auto insurance rates.