The Insurance Bureau of Canada has issued a statement praising the government of Alberta for its decision to look into reducing red tape surrounding the province’s auto insurance system.
The provincial government had declared this week to be “Red Tape Reduction” week in an effort to cut unnecessary costs created by red tape, ultimately benefiting consumers. While the decision affects other different bureaucratic procedures, it is relevant to the insurance industry because Alberta’s auto insurance market is heavily regulated.
Alberta’s auto insurance industry has to abide by over 525 regulatory provisions.
Apart from potentially lowering any unnecessary insurance costs created by needless bureaucratic processes, IBC noted that by cutting red tape, Alberta could open its doors to more insurance options, such as usage-based insurance or pay-as-you-drive products. The province could also change the rate regulation framework that governs how insurers set premiums.
“Alberta businesses and consumers are pleased with the steps this government has taken to cut red tape and allow more innovative solutions,” commented IBC Western vice-president Celyeste Power.
Power added that more could still be done to provide drivers in the province more choice while reducing pointless costs, by focusing on consumer outcomes.
