Is Alberta’s auto insurance sector in crisis?
Ensure access to affordable, flexible auto insurance
For over 100 years, Wawanesa has supported Alberta communities through good times and bad.
As a mutual insurer, we’re member owned, and we exist for the benefit of our members. We help Albertans recover from catastrophic fires, hailstorms and other life-changing events. As part of our commitment to our members, we need to ensure Albertans are aware of another looming crisis - access to affordable and flexible auto insurance for the long run.
What's happening
For nearly a decade, governments of different political stripes have implemented short-term measures to limit auto insurance costs. Unfortunately, these well-intentioned policies have failed to deal with the underlying problems that are pushing the industry rapidly toward crisis.
Wawanesa today provides about 300,000 Albertans with auto insurance. For every dollar we charge for insurance, our costs are actually higher. This is because of rising theft rates, significantly increasing repair costs and injury settlements through a complex legal liability process. Under the current regulations, we cannot recover our basic costs, making it tough to operate in Alberta.
In the last year
Three insurance carriers have left the Alberta auto insurance market due to government interventions, leaving an estimated 40,000 Albertans seeking coverage they may not be able to find.
$3.8 billion in total losses covered by Alberta insurance companies in 2024 due to catastrophic events.
What we're doing
There are four systemic solutions we're calling on the government to urgently pursue:
1 Rate cap relief
to cover insurers' costs while balancing the affordability and availability of insurance that Albertans need.
2 Rate rebalancing
to provide insurers the flexibility to rebalance rates so that every policyholder is charged the right rate and safe drivers aren’t unfairly subsidizing unsafe ones.
3 No-fault insurance
to eliminate spiraling legal costs that raise premiums for everyone.
4 Red tape reduction
to minimize administrative costs that burden insurers and result in higher premiums.
We're continuing to be a positive voice for change by meeting with elected officials and launching ads you may see popping up across the province.
Alberta's mutual insurer
Albertans trust us to insure their homes, cars and livelihoods
approximate claims paid to Albertans annually
(plus $200 million more anticipated after the Jasper fire and Calgary hailstorm)
invested in community impact initiatives in Alberta since 2020
Albertans employed through Wawanesa and our subsidiary Western Financial Group