In response to the Alberta government’s announcement of new regulatory actions in the auto insurance system, Aaron Sutherland, Vice-President, Pacific and Western regions, Insurance Bureau of Canada (IBC), issued the following statement:
“Alberta’s insurers share government’s goal of improving the affordability of auto insurance for drivers. As stated by the Minister Nate Horner, President of Treasury Board and Minister of Finance, the only way to achieve this is to take meaningful action to address the underlying cost pressures impacting rates.
IBC is concerned that the measures announced today – including the return of the provincial rate cap – threaten the viability and competitiveness of the auto insurance system, and will strain the availability of coverage while doing little to improve the price drivers are paying. This additional regulatory intervention and red tape will only add to the growing pressures on drivers’ premiums due to rising legal costs, theft, and inflationary increases in the cost of vehicle repairs.
Alberta’s definition of a ‘safe driver’ applies to roughly 80% of drivers on the province’s roadways. Alberta’s Grid framework also caps rates for an additional 10% of drivers in the province. Rate caps have been implemented before in Alberta and elsewhere with the same result – less choice, and more expensive coverage.
Alberta’s insurers are committed to continuing to work with government on long-term reforms that will improve the affordability of auto insurance for drivers in the province. IBC believes our Enhancing Care & Expanding Choice proposal presents the best opportunity to achieve this and creates the best balance between a tort and no-fault insurance system. It would give drivers more choice and control over their coverages, would double treatment and care for those injured and, most importantly, could reduce premiums by $200 on average."
