Alberta has spoken, and the results are nothing short of striking: for the first time in history, Canada’s NDP will now control the provincial government, ending conservatives’ 44-year rule.
While a majority of political commentators are busy contemplating what the new leadership means for the oil industry and climate change politics, others have pointed out that the shift could have also implications for insurance agents and brokers.
One concerned citizen highlighted the fact that in provinces run by the NDP, auto insurance rates have skyrocketed, which he fears may soon happen in Alberta as well.
“Past NDP governments in B.C., Saskatchewan, and Manitoba brought in government-owned car insurance,” writes a letter to the editor in The Medicine Hat News. “Today, B.C., Saskatchewan, and Manitoba have the highest car insurance rates in Canada because taxpayers cannot shop the market for the best rates like the other seven provinces can do.”
A Calgary-based brokerage owner disagrees, however, arguing that it’s too early to tell how the election results will impact the industry.
“While we know that public insurance hasn’t been great for the consumer in other provinces, the biggest thing right now is really the transition because a lot of the pressing issues and services that were being looked at will now be put on the backburner until the new government gets up to speed,” said Sherif Gemayel, president, Sharp Insurance.
Gemayel also remarks, however, that auto insurance rates are not always an accurate reflection of industry health.
“Let’s not forget that the NDP in Ontario called for a 15% rate reduction, which was enacted and was actually detrimental to the industry, and without putting in the necessary changes for dealing with fraud and claims,” he said
In the meantime, newly elected premier Rachel Notley has stressed to business and industry leaders that there is no reason to panic, as she intends to work with them to achieve what’s best for the province.
"I'm going to be reaching out to industry and they can count on us to work collaboratively with them,” she said in a news conference. “And I'm hopeful that over the course of the next two weeks they will come to realize that things are going to be A-OK over here in Alberta."
