By: Luke Jones, Published on February 21, 2018 03:26 PM, Last Update on February 21, 2018 12:27 PM
Aviva Canada will raise auto insurance premiums in the near future, the company’s CEO has confirmed. Speaking to Canadian Underwriter, Greg Somerville, president and CEO of Aviva Canada, said there is “no question” premiums will increase across Canada.
Earlier this month, Intact Insurance made a similar ominous promise on the back to poor auto insurance results during the last quarter. With Aviva Canada following suit, it means the country’s two largest property and casualty insurance providers will increase auto premiums this year.
Like Intact, Somerville says the cost of repairing vehicles is a driving factor in rising claims costs, while distracted driving is also a concern.
Focusing on the latter, Somerville said distracted driving is increasingly influencing claims costs. “It is not limited to people on their cellphone,” he said. “There are lots of activities that go on in a car that are unacceptable as far as directing people [away] from what they should be paying attention to.”
Somerville adds data across North America shows collisions are becoming worse and point to distracted driving being the cause. He points to a lack of skid marks in accidents, suggesting drivers are distracted and don’t know about the collision until it happens.
“Both of those are proxies for people not paying attention, and obviously not even attempting – or having limited benefit of the driver attempting – to slow down before hitting something,” Somerville said.