Auto insurance claims

November 24th, 2011 - Daniel Barron

Aviva Canada says slippery roads, white-out conditions and other weather-related factors helped account for more than $37.1 million auto-collision claim payments last winter.

Winter drivingWinter brings 49% increase Canada-wide: Aviva

As the winter weather gets ready to hit cities across Canada (if it hasn’t already), new statistics compiled by insurance company Aviva Canada show which provinces have the highest increase in claims in the winter compared to the rest of the year.

The highest increase occurs in Alberta, which sees a 66 percent increase in customer auto claims between December and February compared to the rest of the year. The stats, which are based on Aviva’s own records, show Newfoundland & Labrador with the lowest increase at 37 percent.

“Canadians are traditionally very experienced winter drivers, but the first snowfall of the year can be extremely challenging even for the most capable motorist,” said Mauro Convertini, Vice President of National Auto Claims at Aviva Canada. “It sounds very simple, but the biggest key to prevention is to slow down as icy road conditions result in vehicle sliding and skidding.”

Aviva Canada says slippery roads, white-out conditions and other weather-related factors helped account for more than $37.1 million auto-collision claim payments last winter.

The totals by province are included below. The stats don’t include Saskatchewan, British Columbia and Manitoba, as they have government run auto insurance programs.

Province Increase in Winter Auto Claim Frequency vs. Rest of Year
Alberta 66%
New Brunswick 60%
Nova Scotia 53%
Ontario 44%
Quebec 44%
Prince Edward Island 41%
Newfoundland and Labrador 37%
Canada Total 49%

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13 comments

  1. Mike says:

    Yes that is all well and good, now publish how much money they took in, saying they paid out so much means nothing unless you show the profit made overall. If they made 100 million more than they paid out then it is a non issue isn’t it?

  2. Mikhail LeDuc says:

    So What! The Bloodsucking insurance companies paid out $37 Million in claims, How about publishing the 100s of billions of dollars they sucked out of our veins???? Being an insurance company is having a license “to steal”!!!! There should be some legislation by the governments (plural) to put at least half of these thieves permanently out of business!!

  3. Mike – thanks for writing in. I think you’re missing the point of this story. It isn’t meant to sing the praises of Aviva. The payout total mentioned in the story is only to show how much money was awarded when the winter weather started. The focus of the story is (or at least, should be) the amount of claims made in each province, giving a bit of a look at what drivers may have a more difficult time getting used to the white stuff when it finally starts covering the ground.

  4. Craig says:

    Mike is clearly missing the point.

    Besides, why is it so bad when an insurance company makes a profit? that’s what companies are supposed to do.

  5. Gardiner Westbound says:

    An amazing business, auto insurers claim they lose money but rarely go bankrupt and fight like banshees to prevent public auto insurance. How believable is that? The house always wins! The cartel operates on a cost-plus basis, its profits guaranteed and topped-up by provincial regulators. In June 2011, Intact Insurance paid $2.6-billion for AXA Insurance citing “outstanding profit metrics.”

  6. BobR says:

    Do some work. This article doesn’t cover Manitoba, where the storey is running. How about calling MPIC to see how we compare? Too much work?

  7. Craig – I couldn’t agree more. I’m sure a lot of people have some beefs with insurance companies at one time or another (myself included), but what’s wrong with making a profit?

    BobR – Autonet.ca is a national website, with a focus on Canadian stories, so this story can’t really be “running” in Manitoba. And as Aviva mentioned in its press release (and which I added to the end of the story), “The stats don’t include Saskatchewan, British Columbia and Manitoba, as they have government run auto insurance programs.” These stats are based on Aviva’s insurance claim records.

  8. Gary says:

    It is OK to make a profit, but outragous profits are un justified. We have to have insurance to drive so why should insurance companies be allowed to make huge returns. Anything over 10 % in todays world is gravy. I would like to see how many average people can get 10% or better on their investments today.
    i awalys say, banks, oil companies, insurance companies, and walmart will always make billions per quarter.

  9. Mike says:

    My comment was merely to state that the amount they paid out is really minor, I see the point about the percentage, all well and good. Sorry if I ranted but I just get fed up here in Ontario with my rates going up all the time, no claims or accidents in 43 years of driving and I still get to pay more. Perhaps a story on the amount of claims compared to their profits would open a few eyes? not begrudging profits at all, after all that is how businesses survive, but when I see the mandatory medical coverage I pay staying the same while the benefits go down, it just irks me, and unfortunately your article caught me at the right time to vent. LOL

  10. RJW says:

    What BobR is trying to say is that the WinnipegSun published Daniel’s article yet there is no mention of Manitoba’s statistics. And also Winnipeg is dubbed Winterpeg for a reason, so to read an article about auto accidents in winter without any Manitoba statistics is odd.

  11. Ron says:

    Aviva’s combined ratio (claims paid and expenses) was 96.8% across Canada on all lines of business (aut, property and commercial). That means that the profit from underwriting was only 3.2%. This would of course be added to investment returns, but that is not a large percentage of profit. I believe those numbers are fair don’t you?

  12. Jamie says:

    In Ontario insurance companies can’t increase rates without first going through FSCO and basically asking for permission and then only a certain percentage of increas is allowed. If price is an issue and not service, then deal with one of the online companies. The other option is to go through a broker and every renewal have them look around for you then call another broker (who deals with different companies) and ask them to do the same. It’s a little bit of work but your renewal should come about 6 weeks before the renewal date leaving plenty of time to shop your business around.
    Take a look at your home policy and see if your sewar back up deductible went from the normal $500 deductible to $2000, that is a very real example of claims experiences!

  13. Sarah Hill says:

    It would be interesting to see this broken down by insurance agencies as well. I wonder who is taking the hardest hit? I am very happy with my insurance (AllState) but I know a lot of people are switching lately.

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