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Author: Troy Rhoades

Updates to Industry Benchmarks and Grid Rating Program, Releases 2022 Annual Review Report and 2022 Market and Trends Report

(September 30, 2022) The AIRB is announcing the following:

  1. Updates to the industry benchmarks for private passenger and commercial vehicles, taking effect October 1, 2022;
  2. Updates to the Grid Rating Program (Grid) rate change decision, taking effect January 1, 2023;
  3. Publishing the 2022 Annual Review Report; and
  4. Publishing the 2022 Market and Trends Report.

 

The 2022 Annual Review Report establishes auto insurance industry benchmarks used for reviewing insurance rates for private passenger and commercial vehicles. The AIRB bases its industry benchmarks on aggregated insurance industry data. We use the benchmarks when insurance companies do not have sufficient data to support the reasonableness of their rate filings.

 

The AIRB may adjust the Grid base premium on or before October 1 each year, following Schedule 3, section 3(1) of the Automobile Insurance Premiums Regulation, based on our analysis and considering the information received during the Annual Review.

 

For more information on updates to the industry benchmarks, refer to the Bulletin 05-2022, Bulletin 06-2022, the Industry Benchmarks webpage, and the 2022 Annual Review webpage.

 

For more information on the updates to the Grid rate change decision, refer to Bulletin 07-2022, Order 01-2022, and the Grid Guidance webpage.

 

For information about the 2022 Annual Review Report, refer to the 2022 Annual Review webpage.

 

For information about the 2022 Market and Trends Report, refer to the Market and Trends webpage.

AIRB Launches New Website

(September 6, 2022) Because more Albertans are accessing the internet using mobile devices, the Automobile Insurance Rate Board (AIRB) is adjusting to this reality by launching this new website.

The AIRB wants all Albertans to have easy access to information about auto insurance in the most convenient way possible. Our redesigned website ensures this. Because websites designed for mobile devices use less bandwidth, Albertans with less connectivity, such as rural and remote areas, will also have better access to this website.

Since 2017, the AIRB has seen a steady increase in users visiting our website using mobile devices. In 2022, almost four of every ten visits were made from a smartphone or tablet.

When the AIRB its previous website design in 2009, we created it with desktop and laptop computers in mind, as the use of mobile devices was in its early days. With more visitors using mobile devices, the AIRB needed to update the website’s design, so Albertans and stakeholders can obtain information on auto insurance on any device.

This website enhances the AIRB’s mandate to educate Albertans and provide them with timely and accurate information about auto insurance. The redesign also makes it easier for insurance industry stakeholders to find the information they need to conduct business in Alberta.

 

2023 AIRB Board Meeting Schedule

(August 17, 2022) Today the Automobile Insurance Rate Board (AIRB) released the Board of Directors‘ 2023 meeting schedule.

The AIRB Board of Directors brings a broad range of expertise and experience to help guide operations. Board members were recruited from across the province
and selected through a public, open competition.

The AIRB Board of Directors meets ten times per year to review rate filings and conduct other business, ensuring auto insurance is accessible, equitable and sustainable for all Albertans. They also meet during the Annual Review Open Meeting.

See the 2023 schedule in the PDF below.

AIRB Launches the Collection and Reporting System

(July 11, 2022) The Automobile Insurance Rate Board (AIRB) launched the new web-based Collection and Reporting System (CARS), intending to improve efficiency, transparency, accountability, and security by having all aspects of filings on one platform for auto insurance companies.

CARS will enhance efficiency because:

  • AIRB staff and insurance companies will not duplicate efforts when submitting and processing automobile insurance rate filings or paying cost recoveries.
  • All aspects of filings will now be on one online platform.
  • The process for collecting and reporting automobile rating program filing information will be more automated.
  • Insurance companies will be able to pay for cost recovery invoices online, should they choose, reducing paperwork.

With the new CARS website, insurance companies will see better transparency and accountability of their filings as they can track and see the present status of their submission.

The security of the filing process will be enhanced as all users of the CARS website will be required to register and sign in using the MyAlberta Digital ID for Business, replacing email as the method of submitting filing materials.

To ensure a smooth transition to this new platform, all insurance companies must submit the CARS Contact Submission Form to ensure all required staff can obtain access to CARS. Once the AIRB has received your contact submission, users can request a MyAlberta Digital ID, and access the CARS website.

Find CARS resources below, such as Notice 05-2022,  the CARS Contact Submission Form, and a link to the CARS website.

Two New Members of AIRB Board of Directors Appointed

(June 30, 2022) The AIRB is pleased to announce the following appointments to the Board of Directors:

  1. Christopher Bruce – Mr. Bruce holds a Master’s degree in Business Administration – Financial Services from Dalhousie University. He is a Fellow of the Institute of Canadian Bankers and has an ICD.D designation from the Institute of Corporate Directors. Mr. Bruce is a retired banking executive with 36 years of experience and extensive experience in board governance with not-for-profit organizations.
  2. Rita Lazar-Tippe – Ms. Lazar-Tippe holds a diploma in Computer Systems Technology and an Information Systems Technology Degree with Honours, both from the Northern Alberta Institute of Technology. She is an experienced not-for-profit Director with over 12 years of board experience and 29 years of information technology experience in the private, public, and not-for-profit sectors. Ms. Lazar-Tippe’s professional experience spans across financial, environmental, entertainment, publishing, engineering, and education industries, all of which are dominated by regulatory and risk compliance issues.

The AIRB recruits Board Members based on specific skills, knowledge, experience, and diversity. The Lieutenant Governor in Council may appoint AIRB Board Members for a term of up to three years and re-appoint them for up to three terms.

The AIRB’s Board of Directors and staff look forward to continuing our mandate with these two new board members.

AIRB Updates Filing Guidelines

(June 29, 2022) The Automobile Insurance Rate Board (AIRB) advises all automobile insurance companies operating in Alberta of amendments to the filing guidelines for private passenger and other than private passenger vehicles.

We have rescinded the Full and Simplified Filing Guidelines and the File and Use Filing Guidelines, effective October 1, 2021, and replaced them with new Consolidated Filing Guidelines, effective July 1, 2022.

Details of these changes can be found in Bulletin 03-2022.

The following documents have been updated due to these amendments:

The AIRB regularly reviews its filing guidelines to provide the most current information to insurance companies in preparing their filings to change or adopt a rating program.

AIRB Announces Date and Releases Preliminary Report for 2022 Annual Review

(June 24, 2022) The Automobile Insurance Rate Board (AIRB) is starting the 2022 Annual Review process for private passenger and commercial vehicles. This review analyzes industry loss experience as of December 31, 2021 for private passenger and commercial vehicles to establish industry benchmarks. These benchmarks are used to review insurance companies’ rate filings for basic and additional coverage, effective October 1, 2022.

Annually, the AIRB requests its consulting actuary, Oliver, Wyman Limited, to complete a preliminary draft Review of Industry Experience (report), as of December 31, for private passenger and commercial vehicles once the data is available.

The AIRB reviews the draft report and consults with interested stakeholders, providing them with a timeline of important dates should they wish to provide input by written submission to the AIRB.

The AIRB’s consulting actuary will review all comments received, update their report based on any new information provided by stakeholders, and submit a final report to the AIRB. The AIRB will review and approve the final report, and inform all stakeholders providing industry benchmarks used in its review of insurance companies’ rate filings, effective October 1.

Stakeholders are invited to participate in the annual review of private passenger and commercial vehicles. Interested parties can make a written submission to the AIRB on issues related to the Annual Review.

Written submissions must be received by Friday, August 5, 2022. These submissions will then be posted to the AIRB website on Thursday, August 18, 2022.

Stakeholders are invited to review the AIRB consulting actuary’s Preliminary Review of Industry Experience for private passenger and commercial vehicles posted on the AIRB’s website. Those wishing to comment on the consulting actuary’s report may send written submissions by Email to [email protected] no later than the dates outlined below.

The AIRB is interested in hearing any information related to the AIRB’s consulting actuary’s Preliminary Review of Industry Experience for private passenger and commercial vehicles, other AIRB benchmarks, and comments related to early indications on the impact of the reforms and inflation on loss trends.

Important Dates
  1. June 24, 2022 – The AIRB Preliminary Review of Industry Experience for private passenger and commercial vehicles is posted on the AIRB website.
  2. August 5, 2022 – Deadline for written submissions from stakeholders.
  3. August 18, 2022 – Stakeholder written submissions posted on the AIRB website.
  4. September 30, 2022 – The AIRB’s final Review of Industry Experience and Industry Benchmarks for private passenger and commercial vehicles is posted on the AIRB website.

AIRB Releases 2022-25 Business Plan

(May 4, 2022) Today the Automobile Insurance Rate Board (AIRB) released their 2022-25 Business Plan.

This business plan was prepared for three years, starting on April 1, 2022, building on our updated vision, mission and values. All of the AIRB’s policy decisions as of March 31, 2022, with material economic or fiscal implications, have been considered in preparing this plan.

The plan’s strategic goals have been adjusted from the previous four goals, ensuring they reflect the market realities and future direction of the AIRB. The strategic goals affirm our commitment to:

  • Optimizing our regulatory process and making evidence-based decisions;
  • Leveraging technology to support innovation and enhance data collection;
  • Being recognized as a leader in our sector;
  • Enhancing our stakeholder engagement and building public confidence in insurance rate regulation; and
  • Continuing the development and engagement of our Board Members and staff to ensure we are proactive to new and emerging trends.

Read the complete plan below and find our past plans on our Infographics and Reports page.

AIRB Completes 2022 Semi-Annual Review

(March 25, 2022) The Automobile Insurance Rate Board (AIRB) has completed the 2022 Semi-Annual Review and approved the 2022 Semi-Annual Review private passenger vehicle (PPV) Industry Benchmarks Schedule.

The AIRB uses Industry Benchmarks as the basis of the review of PPV filings submitted on or after April 1, 2022. All PPV filings received on or after April 1, 2022, should incorporate the most current Industry Benchmarks to the extent their own data is not fully credible.

Find the 2022 Semi-Annual Review document and Industry Benchmark schedule below.

AIRB Releases 2021 Annual Report

(March 8, 2022) The Automobile Insurance Rate Board (AIRB) released its 2021 Annual Report, reflecting the activities, results and performance of the AIRB for the year ended December 31, 2021.

Some of the AIRB’s successes from 2021 were:

  • Implementing principles based guidance for usage based insurance, rating variables and rating territories;
  • Simplifying of our filing guidelines streamlining to a single guideline for both full and simplified filings, thereby reducing red tape; and
  • Implementing file and use filing guidelines for CLEAR, DCPD, and miscellaneous vehicles.

The AIRB is excited for 2022 and will be seeking:

  • Further opportunities to reduce red tape for insurance companies while ensuring consumer protection;
  • To build on our consumer education; and
  • To work with insurance companies to opportunities to introduce innovation in our marketplace, such as pay per km or usage based insurance.

The AIRB is committed to ensuring automobile insurance is accessible, equitable and sustainable for all Albertans.

Find the full 2021 Annual Report below. Find past Annual Reports on our Infographics and Reports page.