Extreme weather remains the wild card as Alberta aims to fix auto insurance system

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Extreme weather remains the wild card as Alberta aims to fix auto insurance system
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A global credit rating agency says Alberta's sweeping changes to its auto insurance system are a step in the right direction, but rising claims from hailstorms remain the wild card.

A car dealership has spent over a half million dollars building large tents to protect their vehicles from hail damage as shown in Calgary on Thursday, July 14, 2016. A global credit rating agency says Alberta's sweeping changes to its auto insurance system are a step in the right direction, but rising claims from hailstorms remain the wild card.

But Dreff says the biggest threat to Alberta's auto insurance sector is the rising number and severity of natural disasters in the province, particularly hailstorms.She says it remains unknown whether the new higher rate cap will be enough for the industry to cover off increased payouts related to future hailstorms.

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