Alberta premier Danielle Smith is not worried baout the possibility of more insurers exiting the province’s auto insurance space, emphasizing that Alberta has a “lucrative” market due to its free enterprise system.
Speaking at press conference late last week, Smith addressed concerns over the withdrawal. She said the government will carefully assess the situation and consider reforms to ensure affordable and fair coverage for drivers.
“We want to work collaboratively to make sure that it’s still a competitive market,” she said. “Because it’s a mandated product, you bet the government has a role in making sure that those prices are reasonable.”
Alberta’s finance ministry announced earlier this month that an insurance company is withdrawing from the province’s auto insurance market by November.
The company was not named due to confidentiality rules, but it was revealed that the exit would impact up to 16,000 drivers. It cited Alberta’s ongoing rate freeze as the reason for the move.
Smith previously issued a mandate letter asking Alberta finance minister Nate Horner to find solutions addressing rising insurance costs in the province.
In an interview with CBC News, Horner acknowledged the mounting pressure within the rate system but expressed his reluctance to adapt a no-fault system without the support of Albertans.
“You’re basically giving up your ability to sue,” Horner said of the topic. “If you’re hurt in a way that will impact your life, for the rest of your life, is it worth it for you to have a little cheaper insurance now and not have that right on the other end, if you’re hurt in a major way?”
Several insurers have publicly reaffirmed their commitment to serving drivers in Alberta. Aviva Canada, Wawanesa, Desjardins, and Co-operators issued statements to Insurance Business earlier this month stating that they will continue working with customers and other industry stakeholders in Alberta.
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