Insurance Industry wants to raise rates

[Dion]

Alberta's insurance industry is looking at a major hike in auto insurance rates.

Two days of hearings are set to start Tuesday in Calgary to determine whether an increase will be approved by the province's insurance rate board.

While the Insurance Bureau of Canada won't confirm how much more it wants to charge, there are reports it's seeking a whopping 37 % increase which would mean an average $225 a year increase for drivers.

http://calgary.ctv.ca/servlet/RTGAMA...calgary.ctv.ca

[Daradon]

Times are tough for the insurance industry... The oil industry is finally able to afford bigger towers then they can...

[Antithesis]

I understand the frustration with insurance companies, but public insurance is not the way to go, in my opinion. I know more than a few people from Manitoba who aren't terribly happy with their public insurance.

I does make me angry that a product that we are forced to buy (well, if you own a vehicle) is subject to huge price increases - maybe there should be a cap on how much they are allowed to increase premiums each year or something.

[killer_carlson]

at some point the insurance industry will have to answer why billion dollar profits are insufficient. I hope the media puts them to this task.

[CaramonLS]

Aren't Alberta's rates one of the highest in Canada already?

[ken0042]

Originally Posted by Antithesis

I understand the frustration with insurance companies, but public insurance is not the way to go, in my opinion. I know more than a few people from Manitoba who aren't terribly happy with their public insurance.

Agreed. For anybody who thinks public insurance is the way to go- go ahead and get an estimate. http://www.mpi.mb.ca/Irc/intro.asp?Lang=0

Basically if you are over 25 you will be paying a fair bit more. If the rates seem cheaper, ask yourself how many tickets/accidents you have. Because this rate is just for the car insurance. The surcharges for bad driving go onto your driver's license. So instead of your insurance going up, the cost of renewing your DL goes up.

Then you have to factor in dealing with a govenment agency any time you have an issue, and if you get poor service; well they have a monopoly so nobody really cares.

[llama64]

Originally Posted by killer_carlson

at some point the insurance industry will have to answer why billion dollar profits are insufficient. I hope the media puts them to this task.

Because if they post smaller profits then last year, they will be seen to be slipping by investors. This will cause mass hysteria among market traders and the world will end as we know it. Or at least to the companies stock holders.

There is no such thing as "enough profit". It it's not more then last time, it's not good enough.

Yeah, it's a stupid system.

[Boblobla]

Originally Posted by Antithesis

I understand the frustration with insurance companies, but public insurance is not the way to go, in my opinion. I know more than a few people from Manitoba who aren't terribly happy with their public insurance.

Well I know TONS of people who are happy with their insurance in Sask. I know one guy who has written of FOUR FREAKING VEHICLES and he still pays less monthly than I do and he has full coverage on a new vehicle and I have 3rd party, fire and theft on mine. Sounds pretty fair since I have never had a claim and we are the same age...

[FlamesKickAss]

again like someone else said in the other thread though, how can you compare calgary to anywhere is saskatchewan?

Compare it to living and driving in red deer or lethbridge. that would be a closer comparison, calgary is a big city there is a bigger risk.

compare the benefits that you have when you have a claim too.

i work at insurance agency and i have seen people come in from man, sask and bc and they pay less here.

i don't want an increase either though don't get me wrong, insurance companies aren't hurting but its like any business they want to maximize there profits.

[Ford Prefect]

I despise insurance companies. I've had to deal with them on hail and auto claims in the past and they are among the lowest of the low. They've tried to screw me and my family every time we've had to deal with them, then they wonder why people try to screw them. Maybe if they didn't try to screw their customers whenever there's a claim people wouldn't try to screw them. Insurance companies are nothing but vultures that prey on peoples fears and exploit them during times of personal crisis. And now they want to charge more for that service because they're afraid they might not get their pound of flesh? Boo-hoo.

[troutman]

CBA has commissioned a report supporting the contention that insurers can still make tidy profits without a rate increase even though the cap's been scrapped.

http://www.cba.org/alberta/PDF/Insurance_Report.pdf

p. 27 - Conclusions

[fredr123]

http://forum.calgarypuck.com/showthread.php?t=54205

Some good discussion in that thread on a similar topic.

[Resolute 14]

Originally Posted by Boblobla

Well I know TONS of people who are happy with their insurance in Sask. I know one guy who has written of FOUR FREAKING VEHICLES and he still pays less monthly than I do and he has full coverage on a new vehicle and I have 3rd party, fire and theft on mine. Sounds pretty fair since I have never had a claim and we are the same age...

The beauty of public insurance is that the provinces that do offer lower rates simply hide the extra costs within general taxes. Lower rates are an illusion.

[MelBridgeman]

When i moved to BC my insurance reverted back to what i was paying when i was 16 + 10 dollars more in Alberta.
Another myth busted..."Insurance in BC is cheaper"...

[GoinAllTheWay]

One thing people need to keep in mind with the insurance industry, especially when they see the "record profits" headlines is this: When you see that kind of headline, that is every insurance company and every type of product (car, home, life, commercial, recreational vehicle) that is contributing to that. To often people think insurance = car insurance only. ONE big bank can easily go head to head with the entire industires profits.

[macker]

Compare the largest Life insurance company in Canada vs the largest general insurance company in Canada.....
most recent quarter.....

Manulife (largest life) earnings 1.14 Billion
ING (largest general) earnings 95.8 Million


Not even in the same ball park. I deal with all of these companies and you can't even compare the profits being generated by the big life/wealth companies such as Manulife, Sunlife, and Great West Life to their poor cousins ING, Aviva, Royal SunAlliance etc. etc. They don't just raise the rates arbitrarily they are set by actuaries and they have to back up any reason for any rate increase. If you don't like your rate in Alberta you are able to shop around : www.kanetix.ca or call your broker directly and make them work for you. The government insurance system may seem like the answer but if you do your home work you can save yourself money without involving the government. They are in our pockets enough as it is already.....

[Boblobla]

Do you know whats worse than people who whine and complain about rising insurance rates? People who whine and complain about people who whine and complain about insurance rates...

[macker]

Originally Posted by fotze

Do you know whats worse than rising insurance rates, people who wine and complain about rising insurance rates.

An easy target in times of stagflation! We haven't had rates rise since 2004 and now a hint of it and the gloves come off again. Soft tissue injuries cost money so this is what you get when you pull the capet from under the cap. Also someone has to pay for the numerous natural disasters that seem to be happening with greater frequency. I don't think the profits are anywhere near the level that people think they are for home and auto which the OP was referring to. The only bad thing about insurance is that you can't buy it when you need it....

[Ironhorse]

Originally Posted by macker

An easy target in times of stagflation! We haven't had rates rise since 2004 and now a hint of it and the gloves come off again. Soft tissue injuries cost money so this is what you get when you pull the capet from under the cap. Also someone has to pay for the numerous natural disasters that seem to be happening with greater frequency. I don't think the profits are anywhere near the level that people think they are for home and auto which the OP was referring to. The only bad thing about insurance is that you can't buy it when you need it....

You must work for an insurance Co.

I believe the profit levels have been released in the past, and should be available. The CBA must have gotten their numbers from somewhere...

[macker]

I work with them but definitely not for them. I am independent and I deal with whatever company I find to be the best. There are some good ones out there and then there is the rest....Insurance companies are definitely not innocent in trying to make a profit read my prior post on this subject as I stated the difference in the most recent quarterly earnings of Canada's largest Life/wealth company vs Canada's largest p&c company (auto etc.) , they are both publically traded companies and the profits don't lie....