Thank you, Mr. Chair.
Members of the committee and fellow representatives, thank you for the invitation to be here today to provide an insurance perspective on issues of concern in the commercial trucking sector.
We represent the Insurance Bureau of Canada, or IBC, Canada's national association for private property and casualty insurers. We work with governments, regulators and stakeholders to ensure that the industry is well positioned to protect Canadians from the risks of today and tomorrow.
On a personal note, I live in Longueuil and have two young children. The tragedy that occurred on August 27 that cost the lives of Tanya Lalonde, who was 34, and her son Elliot, who was five, hit me particularly hard, because it happened a few minutes from my home. It could have been my wife and kids.
I offer the family of Ms. Lalonde my condolences.
The commercial trucking sector is vital to Canada's economy, moving goods across a vast supply chain network. The majority of truck drivers are hard-working professionals deeply aware of the importance of safety both for themselves and for others.
However, the insurance market for commercial trucking has seen a significant increase in the size and the severity of insurance claims resulting from accidents on roadways. For consecutive years, insurers paid out more in claims and expenses than they earned in premiums.
Today, premiums continue to be under pressure, creating affordability challenges for the trucking sector. The key factors contributing to insurance affordability challenges are the new and inexperienced drivers on the road, fraud in the marketplace, an increase in the size of liability claims due in part to nuclear verdicts in the U.S., and a high turnover of experienced drivers.
In 2024, IBC released a report with data showing that drivers who are inadequately trained are more likely to be involved in collisions. We developed a suite of national public policy recommendations to address challenges and worked diligently with partners in the sector to advocate for changes to government-led truck driver education. We continue to advocate for changes in every jurisdiction.
Trucking must be treated as a profession. High-quality training is a key defence against rising claims costs and a way to improve road safety while supporting the economic viability of the sector.
The trucking sector is facing a critical labour shortage. The demand for new drivers will only increase as experienced drivers retire in the coming years. In 2023, 48% of commercial truck drivers in Canada were over the age of 50.
As new drivers enter the profession, proper training is essential. The level of training and driving experience have an impact on insurance pricing. Unfortunately, current entry-level training programs are insufficient. Most jurisdictions offer only minimum standards, which do not adequately prepare drivers for the complexities of driving on Canada's roads.
We have an opportunity in front of us to ensure the next generation of truck drivers is among the most skilled in the world. To promote safer roads, affordable insurance and a sustainable trucking industry, IBC urges government to act in a few key areas.
The first is to improve training. Provincial and territorial governments should enhance entry-level training programs for truck drivers to provide a standardized curriculum for schools and professional instructors, with subsidies to help drivers receive this training at an affordable price. As well, governments should update national commercial vehicle safety standards and mandate harmonized comprehensive entry-level training requirements across jurisdictions, and also mandate continuing education after entry-level training is completed. Additional training will help better prepare drivers for Canada’s unique terrain.
The second is to tackle fraud by creating a centralized national database to verify insurance information and identify fraudulent actors. This will help improve underwriting accuracy.
The third is to mandate that truck operators provide comprehensive employment history documentation to support drivers seeking new opportunities. The importance of a safe and prosperous commercial trucking industry today is critical to the Canadian economy, as 20% of Canada's total GDP moves across provincial and territorial borders each year. Governments must prioritize road safety and fair competition.
IBC calls on the federal government to collaborate with provinces and territories to develop cross-jurisdictional solutions that help deter fraud, improve training and protect all road users.
Thank you, sir.