Auto theft is a major problem in Canada: DBRS Morningstar

Auto insurance companies are battling with rising car theft in the Canadian market, according to DBRS Morningstar.

Patrick Douville, vice president of insurance ratings at DBRS Morningstar, told BNN Bloomberg on Thursday that the export of stolen vehicles is a growing concern in the Canadian market.

“It looks like there’s a particular problem in Canada with auto theft,” he said in a television interview.

Douville explained that normally car theft is done for joy rides or to commit another crime with a stolen automobile. Now, he said, there’s the growing trend of theft for international export of the car, which is on the rise in Ontario and Quebec in particular.

“It’s slowly raising alarm bells for insurers,” he said.

The trend has affected auto insurers in the country after several years of good earnings due to reduced driving activity during the pandemic.

 

“For about four quarters now we’re starting to see both inflation and theft, as well as the return to more normal driving patterns to affect claims and auto insurance results,” Douville said.

The industry is working with manufacturers, the federal government and law enforcement on solutions, Douville said.

He pointed to stronger border controls, auto theft devices and credit on certain car premiums as examples of what’s being discussed.

“Theft is about seven per cent of claims for auto insurance in Canada, so there is certainly work to be done in order to help overall claims pressures,” he said.

 

 

This article was reported by BNN Bloomberg