Insurers taking losses due to Alberta auto rate cap: Insurance Bureau of Canada

A major global credit rating agency says Alberta must come up with a "clear long-term solution" to its auto insurance woes or additional insurers will depart the province. Highway traffic moves into Calgary on Wednesday, Feb. 8, 2017. THE CANADIAN PRESS/Jeff McIntosh

EDMONTON — The Insurance Bureau of Canada says recently released Alberta government figures show rate caps are “deepening the financial crisis” for auto insurers in the province.

The 2024 annual report from the Superintendent of Insurance was posted online this week.

The report says a substantial majority of Alberta auto insurers were unprofitable that year, with private passenger automobile insurance taking the biggest hit.

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The provincial report says auto insurers’ expenses in 2024 exceeded revenues by a collective $1.2 billion.

It forecast escalating claims costs will continue to exceed the province’s Good Driver Rate Cap, which sits at 7.5 per cent.

The Insurance Bureau says a handful of insurers have left the Alberta market, while others have restricted the sale of coverage.

“This new report confirms once again that, rather than helping Albertans, the rate cap is harming the competitive market that consumers depend on,” said bureau vice-president Aaron Sutherland.

This report by The Canadian Press was first published Jan. 9, 2026.

The Canadian Press