By: Luke Jones, Published on February 25, 2018 04:53 PM, Last Update on February 25, 2018 01:54 PM
RSA Canada has become the latest major auto insurance carrier to push towards premium increases this year. The British-based company follows Intact Insurance and Aviva Canada, the country’s two largest P&C providers, towards increasing auto rates.
In a press note, RSA echoed Intact and Aviva by saying the cost of repairing vehicles has increase too much because of technology. Additionally, the company pointed to the continued upwards trend of distracted driving, something Aviva Canada cited as a reason for its own proposed premium hike.
“We have seen a trend of increasing frequency [of collisions] which we [attribute] in large part to distracted driving,” Martin Thompson, president and CEO of RSA Canada, said Thursday during a conference call to details the RSA Group’s preliminary financial results for 2017.
Following up the comment through a press release on Thursday, RSA Canada said the auto insurance market in Canada is tough for companies.
“As an industry we have been trying to hold back on price increases, but there comes a point where so much pressure builds up in the system that you have to respond,” Thompson said Thursday. “So we have certainly been filing for increases in almost every province across the country.”
The cost of repairing vehicles is challenging insurance companies. For RSA Canada, Thompson said technology is the driver behind increased costs. During the call, he said “as we see more technology being implemented into vehicles, we are seeing quite significant inflationary pressure on the cost of repair.”
During the call, RSA Group said its Canada division produced a combined ratio of 93.9% during 2017, down a point from 94.9% during 2016.