The Insurance Bureau of Canada (IBC) is supporting the Alberta government’s move to fix its auto insurance through an extensive review of the system.
Alberta is establishing a three-member advisory committee tasked with researching and recommending solutions to resolve the affordability and comprehensive coverage issues surrounding the province’s auto insurance system. The committee, headed by Automobile Insurance Rate Board representative Chris Daniels, will report its findings to the government in spring 2020.
“IBC and the insurance industry have heard loud and clear from consumers that Alberta’s auto insurance system isn’t working,” said IBC Western vice-president Celyeste Power in a statement supporting the decision.
Power added that Alberta’s three million drivers are demanding things such as more affordable premiums, more choice, as well as more medical care and support when they most need it.
“We encourage all stakeholders that participate in the government’s review to focus on what consumers want and, frankly, deserve,” the vice-president stated.
IBC will participate in the consultation process of the advisory committee.
Alberta has been paying some of the highest rates in Canada for years. The former NDP government sought to control costs by introducing a 5% cap on annual rate increases, however it did little to fix the underlying problems. Under the cap, insurers, in some cases, stopped offering critical protections to customers in order to save on costs.
When the UCP government later took control of the province, it chose not to renew the cap on rate increases.
In a previous statement, the IBC said that it believes Alberta’s auto insurance rate hikes were driven by the increasing frequency and cost of claims in the province. The bureau had called for the government to change regulations to cut down on costs related to legal representation and minor injury payouts.
