IBAA Raises Concern Over NDP's Proposed Rate Freeze
Alberta brokers' association questions whether Bill 206 is best option for Albertans
EDMONTON, AB, Dec. 15, 2022 /CNW/ - Today, Alberta NDP's Justice Critic, Irfan Sabir, introduced Bill 206, Insurance (Private Passenger Vehicle Premium) Amendment Act. If passed, this Bill would freeze Alberta's auto insurance rates for one year.
Following this announcement, the president of the Insurance Brokers Association of Alberta, Barry Haggis, issued the following statement:
"Bill 206 is disappointing news for Alberta's drivers. Rate caps simply don't work. They do nothing to reduce costs within Alberta's insurance system, and simply push problems down the road while making it difficult for many drivers to obtain the coverage they need.
The government reforms following the significant challenges created by the last NDP rate cap, have resulted in access to greater choice in the marketplace and new, innovative coverage options. During the last rate implemented when the NDP was in power, consumers had limited options in the marketplace—insurance companies were forced to make difficult business decisions, which resulted in less choice and instances where drivers simply couldn't access the coverage they needed. In short, it created more problems than it solved.
As local insurance brokers, we firmly believe that more can and should be done to improve affordability for Alberta drivers, particularly given the cost-of-living challenges many consumers are facing here and across the country. This bill is not the answer. Instead, we need to work together—brokers, insurers, and government officials—to identify ways to bring lasting affordability improvements for drivers.
If Bill 206 is passed, costs will only continue to build up and consumers will face the same challenges they did last time. Let's try to find real solutions that will result in lasting change for Albertans."
IBAA is a non-profit trade association representing over 4200 broker members working through about 260 individual brokerages across Alberta, the Yukon, the Northwest Territories, and Nunavut.
If you would like more information about our position on the above, please contact George Hodgson at 780-702-3719 or [email protected]
SOURCE Insurance Brokers Association of Alberta
George Hodgson, CEO, Insurance Brokers Association of Alberta (IBAA), 1-780-702-3719, [email protected]
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