“With more drivers on the roads, there has been an increase in accidents and claims,” he told CU. “And with recent supply chain issues, we have also seen an increase in the cost of those claims, which puts further pressure on premiums.”
Gibson noted Aviva Canada returned more than $150 million to customers in response to significantly lower levels of vehicle use in 2020 and 2021. In all, the company reduced its auto premiums in Ontario by 12%, he added.
“As we have seen claims costs rise, we are similarly slowly returning our insurance premiums to pre-pandemic levels,” he said. “We are slowly removing the premium reduction in incremental steps and expect it to be back to pre-pandemic levels this fall.”
There’s been speculation that rising gasoline prices, spurred by sanctions and oil supply chain issues following Russia’s invasion of Ukraine, may dampen Canadians’ driving habits. But for now, evidence suggests consumers are looking to return to some level of normalcy, including driving more than they did during the COVID-19 lockdowns.