Alberta’s trucking sector has been quietly losing ground – and the culprit isn’t freight volume or fuel costs. According to Mohit Halkare (pictured), president of Mango Insurance, it’s a broken insurance framework that continues to punish smaller carriers while shielding large fleets from the same financial pressures.
“Insurance is one of the top five expenses for trucking companies,” said Halkare. “Yet for smaller carriers – those with between one and 50 trucks – their voice on this issue is largely absent.”
He pointed to Alberta’s only trucking association, ATMA, as failing to prioritize this issue. “It doesn’t even list insurance affordability for small carriers among its top five concerns,” he said.
Larger fleets, typically with 50 or more trucks, have retained access to competitive insurance rates. Smaller operators, meanwhile, are increasingly pushed into the Facility Association, often through Nordic Insurance, which serves as the insurer of last resort. The structure leaves little room for clarity or fairness.
“Fleets with five or more units are rated without the transparency that IRCA rates provide, and profitability or loss data for the trucking portion isn’t publicly available,” said Halkare.
Alberta’s insurance framework also lacks the flexibility offered in other provinces. Unlike Ontario, Alberta does not allow truckers to opt out of Direct Compensation for Property Damage (DCPD) – even for fleets that do most of their driving in the U.S., where DCPD doesn’t apply.
“They still pay 100% of the premium,” Halkare said. “SEF 49 is permitted in Alberta but insurers aren’t obligated to offer it.”
The lack of regulatory reform is already having consequences. Without meaningful action, Halkare warned that smaller fleets will continue relocating to provinces with more equitable pricing models and fewer regulatory blind spots.
“Unless regulators and associations prioritize this issue, the exodus will only accelerate,” he said.
As telematics and AI-driven underwriting become more prevalent across Canada’s transportation sector, Halkare argued that Alberta’s Trucking industry is squandering a major opportunity to build safer, more efficient systems.
“Every industry monitors its workers during active duty – manufacturing, retail, IT, and banking included. Trucking should be no different,” he said. “While telematics may reduce a driver’s sense of privacy, it dramatically increases safety. And on the road, safety must win.”
Halkare was critical of insurers' failure to use data from federally mandated electronic logging devices (ELDs), which became enforceable in January 2023. “If insurers had mandated ELD data as part of underwriting, the industry would already be safer and more cost-efficient,” he said.
Mango Insurance has already moved in this direction with its own program, TrucksureIQ. The telematics-based platform provides more favorable rates and broader coverage, accepting carriers where at least 75% of drivers have two or more years of experience and maintain good SMS scores.
“In the short term, these programs will be the only viable path to insurance,” said Halkare. “In the long run, telematics-driven pay-per-use insurance will define the future of trucking coverage.”
Halkare outlined several reforms that he believes could quickly level the playing field for smaller fleets – without increasing risk for insurers. First on the list is regulatory alignment with Ontario’s opt-out provision for SEF 49.
“This single step could cut premiums by 15% overnight for U.S.-bound truckers,” he said.
He also called on Alberta’s insurance regulator, AIRB, to expand oversight beyond IRCA filings. “It should be scrutinizing Facility Association fleet rates for auto liability in trucking as well,” Halkare said.
Driver safety technology should also be mandated, he added, particularly for distracted driving. “At under $50 per truck per month, this small investment can make roads safer while pushing premiums down,” he said.
Each of these steps would help smaller operators compete on fairer terms – while maintaining insurer protections and improving road safety across the province.
Halkare warned that the province’s status as a logistics hub is no longer guaranteed. “Alberta’s trucking strength has quietly eroded,” he said. “Fleets are shifting registrations to BC, Manitoba, Ontario, and Saskatchewan. That reputation is already slipping.”
His solution? A complete rethink of how trucking insurance is priced.
“Telematics-based pay-per-use insurance” is the future, he said. Unlike static annual premiums, a dynamic model would price coverage based on kilometers driven, provinces traveled, driver experience, cargo type, and regional risk exposure.
“Rates must be data-driven and dynamic,” he said. “This model would not only align pricing with true risk but also stabilize Alberta’s trucking economy against volatility in commodities and cross-border trade.”
While many in the sector remain hesitant, Halkare’s approach reflects a growing consensus that outdated pricing models can’t survive a data-rich, high-risk landscape.
