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Tag: Annual Review

AIRB Announces Dates and Releases Preliminary Report for 2023 Annual Review

(June 24, 2022) The Automobile Insurance Rate Board (AIRB) is starting the 2023 Annual Review process for private passenger and commercial vehicles. This review analyzes industry loss experience as of December 31, 2022 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, 2023.

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

The AIRB reviews the preliminary 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. Refer to the Notices below for information and dates on participation in this process.

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 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.