Investor Presentaiton
INSURANCE INDUSTRY: ARGUMENTS & TACTICS
Claim Cost Increases - The insurance lobby has argued that injury claims and claim costs are increasing
and affecting profitability.
In reality, the numbers provided by auto insurers are self-serving and should not simply be accepted
without scrutiny. Insurance industry numbers come from the General Insurance Statistical Agency (GISA).
At the 2016 Alberta Insurance Rate Board Annual Review, the Government's own actuary raised serious
questions about data being provided to the GISA by some of Alberta's largest auto insurers.
IBC has not and does not provide raw data in support of its statistics
However, data that is available shows claims and associated costs stabilizing over the last number of years.
The argument that claims costs is responsible for financial woes ignores the cyclical ups and downs that the
insurance industry regularly encounters, and the significantly more impactful role that interest rates,
investments, and property & casualty claims play in the overall health of insurance companies.
Additionally, in the new draft of the Wyman report, it states on page 10 that the "GISA advises caution in the
use of the data due to reporting problems and errors by individual users".* This is important as it can be
extremely difficult to trust data when there is a possibility of misrepresented information. Further, the
information received is not audited, verified or reviewed for the purposes of the Wyman report.
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*Source: Oliver Wyman - Annual Review of Industry Experience (AIRB)View entire presentation