EDMONTON, AB, Aug. 31, 2026 /CNW/ -- Last week, the Automobile Insurance Rate Board (AIRB), the independent regulatory agency that oversees and approves automobile insurance in Alberta, released its "2026 Market and Trends Report." The report provides an annual overview of the province's auto insurance marketplace. Following the report's release, Aaron Sutherland, Vice-President, Western and Pacific, Insurance Bureau of Canada (IBC), issued the following statement:

"The AIRB's '2026 Market and Trends Report' reinforces what drivers already know: Alberta's auto insurance system is broken, as the availability and affordability of coverage continues to decline. Finding that premiums increased 8.7% last year, while insurers continue to lose money at record levels, the report provides further validation that the government's new Care-First insurance system can't come soon enough.

"Not everybody is feeling the financial pain, however. As in previous years, the AIRB's report highlights that legal costs remain the most significant cost pressure underlying drivers' premiums and trial lawyers continue to play a costly role in the current system. By taking action to rein in out-of-control legal costs and lawsuit abuse, the government's Care-First system will save drivers hundreds annually while providing the greatest level of care and recovery benefits in Canada for those injured in collisions."

Quick Facts

The AIRB's latest report has found that last year (2025):

• Drivers' premiums averaged $1,903, up 8.7% from the previous year (2024).
• Third-party liability (predominantly legal and litigation) costs now account for 58.2% of the premiums that drivers pay.
• Comprehensive vehicle damage claims (largely associated with severe weather events like hail) were down year-over-year, though inflationary pressures have raised the cost of repairing vehicles for these claims by roughly 27% in recent years.
• The cost of vehicle theft was relatively stable at $39.50 per policy.
• Despite an increase in the cost of premiums, the sale of auto insurance remains unprofitable, with insurers losing 9 cents for every dollar of coverage they sold in 2025. Data from MSA Research, an independent and impartial analytical research firm focused on the Canadian insurance industry, shows that between 2013 and 2024, insurers lost money on the sale of auto insurance in Alberta every year except 2021 and 2022, when there was a dramatic decrease in claims during the COVID-19 pandemic.

About Insurance Bureau of Canada

Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up the vast majority of Canada's highly competitive property and casualty (P&C) insurance market.

As the leading advocate for Canada's private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow.

IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses.

For media releases, IN Focus articles, or to book an interview with an IBC representative, visit ibc.ca. Follow us on LinkedIn, X and Instagram, and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC. We're here to help.

SOURCE Insurance Bureau of Canada