Motor Fleet at a Crossroads

Why It Matters

Rising repair and claims costs are forcing fleets to change purchasing, maintenance and insurance strategies, which will drive higher operating costs and premiums industry-wide; constrained pricing in public markets risks reduced competition and longer-term instability.

Summary

Canadian motor-fleet insurers and brokers warned that rapid vehicle-technology advances and sharply higher repair costs are driving commercial-auto premiums up, prompting Saskatchewan’s public auto insurer to seek a 3.75% rate increase for 2026–27. Panelists said insurers have been slow to price in the rising costs of sensors, windshields and advanced driver systems, and that running every claim through insurance is unsustainable. Fleet managers are responding by reviewing coverages, increasing deductibles, self-insuring more risks, cycling vehicles differently, and setting up in-house repair or parts strategies to control costs. Speakers also warned that government rate caps and subsidized public insurers can distort markets, reduce competition and push private carriers to exit jurisdictions.

Original Description

Rising costs, smart tech, and the race to control risk