Hot economy in Western Canada poses challenges

The red-hot economy in Western Canada is posing challenges of increasing claims costs and talent retention issues for insurers, Diane Brickner, president and CEO of Peace Hills Insurance Company, told delegates of the North American Insurance Conference, in Tampa, Florida.
While the current labour shortage in Alberta has made it difficult for insurers to find and retain talent, it has also had the ripple effect of increasing claims cost in auto and home lines, she said.
Body shop rates have increased from $40/ hour to $60/ hour and now have risen to $67-hour with much longer wait times for repairs, she told the crowd.
The shortage of labour has also driven up the cost of housing, and subsequently home repairs, she added.
Other challenges that lay ahead include TILMA the trade, investment, and labour mobility agreement between the British Columbia and Alberta governments, she continued.
TILMA came into effect on April 1 of this year, she noted and the agreement essentially eliminates barriers to trade, investment or labour mobility between B.C. and Alberta. While there is a two-year transition period, the potential impact on Albertas insurance industry has yet to be seen, Brickner said. One question that has yet to be answered is whether or not the credit unions and banks will be able to sell insurance, she added.