IBC Statement: Alberta's auto insurance measures
Removal of rate pause is key to ensuring competitive market for consumers, but further red tape likely to add costs for drivers
EDMONTON, AB, Nov. 1, 2023 /CNW/ - 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 affordably 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.
Insurance Bureau of Canada is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up the vast majority of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.
For media releases and more information, visit IBC's Media Centre at www.ibc.ca. Follow us on Twitter @InsuranceBureau and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC.
SOURCE Insurance Bureau of Canada
Media Contact: Brett Weltman, Manager, Media Relations, IBC, [email protected]
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