Actuarial Notes

Filing Guidelines for Change in Rates & Rating Programs

By Automobile Insurance Rate Board · 2025

The Alberta Automobile Insurance Rate Board's filing guidelines for prior approval (full) and file and use filings, effective October 1, 2025. Section 602 of the Insurance Act and the Automobile Insurance Premiums Regulation require insurers to obtain approval for a new or revised rating program; these guidelines set the requirements for each filing type and a methodological approach for preparing a filing. They apply to filings from October 1, 2025 to the repeal or replacement of Ministerial Order 33/2025, with separate guidance for implementing Care-First.

A. General Information

  • Filing Requirements
    • The guidelines cover prior approval (full) and file and use filings for private passenger vehicles (PPV) and other than PPV; AIRB staff have some discretion to waive or require requirements or filing types.
  • Approval Process
    • Filings and Rating Profiles are submitted through the Collection and Reporting System (CARS).
    • The AIRB targets a decision within 60 days for a prior approval filing once complete; a file and use filing not decided within 30 business days is deemed approved.
  • Principles and Expectations for Rating Programs
    • Components are evidence based and reasonably predictive of risk, and distinguish fairly between risks; rating programs do not impair solvency or provide excessive returns; changes in rates are reasonable; and premium changes are clearly communicated to consumers.
  • Determining the Applicable Filing Type
    • An insurer using file and use must submit a full filing with rate indications every three years, unless waived.
    • File and Use — Private Passenger Vehicles (PPV) Only: under Ministerial Order 33/2025, no increase of more than +7.5% in a calendar year for a "good driver" (inclusive of +2.5% for catastrophes), no All Coverage Average rate level change above +12.5% in 12 months, at least 12 months between renewal increases, and all filings under the Order are file and use.
    • All Classes of Vehicle Other than PPV: file and use for an overall increase of +15.00% or less in one policy year, at least 12 months after the last increase approved through a full filing.
    • Consumer Impact Thresholds: the AIRB monitors dislocation for all vehicle classes.
    • Full Filing Waiver Threshold: the three-year full filing is waived below 15,000 exposures per class, with no credible data, for vehicle protection products only, or in other extenuating circumstances; under the Good Driver Rate Cap the AIRB accepts no full filings on PPV.
    • A prior approval (full) filing is required for a new rate indication, a change above file and use limits, a new rating program, three years since the last full filing, or where actuarial analysis is needed.
  • Other Filing Notes
    • Acquisitions or Mergers, Rate Change Approvals and Insurer Request to Withdraw Filing are referred to the Technical Guidance – Changes in Rates and Rating Programs.
  • Filing Format
    • 1 Cover Letter, 2 Table of Contents, 3 Summary of Information (CARS), 4 Certifications of the Officer and Actuary (CARS), 5 Actuarial Support (Full Filings Only, Appendix D), 6 Rating Rule Changes, 7 Final Rates/Rate Level Change, 8 Dependent Categories, 9 Communication to Policyholders, 10 Underwriting Manual, 11 Rating Profiles (CARS).

B. Definitions

  • Definitions are referred to the Technical Guidance – Changes in Rates and Rating Programs.

C. Guidelines for Each Section of the Filing

  • Section 1: Cover Letter
    • All proposed changes, their effective dates and rationale, and an authorized contact.
  • Section 2: Table of Contents
  • Section 3: Summary of Information (CARS)
    • Dislocation Tables (Q6 in CARS): uncapped dislocation compares proposed uncapped premiums with current on-leveled uncapped premium, capped likewise, and the 12-month cumulative dislocation compares proposed premiums with charged premiums 12 months before the effective date.
  • Section 4: Certificates of the Officer and of the Actuary (CARS)
    • The Officer's certificate (B1) for every filing; the Actuary's certificate (B2) and Rate Filing Completion Confirmation Checklist (B3) for actuarial full filings only.
  • Section 5: Actuarial Support (For Actuarial Full Filings Only)
    • Detailed actuarial support for any rate level change, as described in Appendix D.
  • Section 6: Rating Rule Changes
    • 6a Rating Rule Changes for Classification Variables and 6b Rating Rule Changes for Discounts and Surcharges: current and proposed distributions, the average premium shift and the overall rate level impact, with calculations in Excel.
  • Section 7: Final Rates/Rate Level Change
    • 7a Algorithms, 7b Base Rates, 7c Differentials, 7d Discounts and Surcharges, 7e Rate Capping, 7f Endorsements, 7g Rate Group Tables, 7h Calculation of Rate Level Change and Average Rate, 7i Calculation of Final Rates.
    • Rate group tables: account for rate group drift in full filings, do not off-balance where the rate group is not a rating variable, and state the table version; insurers may use methods other than CLEAR.
  • Section 8: Dependent Categories
  • Section 9: Communication to Policyholders
    • How the insurer will communicate premium impacts, with copies of renewal letters and broker/agent materials.
  • Section 10: Underwriting Manual
    • Changes shown with tracked changes in Word; the final manual filed in CARS within 30 days of approval.
  • Section 11: Rating Profiles (CARS)
    • Current and proposed rating criteria for each profile on an uncapped basis, filed within 30 days of approval.

Related readings

  • AIRB Annual Review Report (2026) — the industry benchmarks the AIRB considers when it reviews full filings

Sources