Alberta insurers seek to address affordability issues

Alberta insurers seek to address affordability issues | Insurance Business Canada

Motor & Fleet

Alberta insurers seek to address affordability issues

Auto insurance premiums facing some of the highest cost pressures

Motor & Fleet

By
Terry Gangcuangco

Insurers in Alberta are keen to work urgently with the government to address affordability issues, according to Insurance Bureau of Canada (IBC).

Aaron Sutherland, IBC vice president for Pacific and Western, said in a release: “Alberta’s insurers are keen to work urgently with the government to tackle the cost pressures facing premiums and find ways to improve the affordability of auto insurance for drivers.

“Unfortunately, the action taken to date – including Alberta’s rate cap for good drivers – does not address the costs underlying drivers’ coverage and will do little to improve the price drivers are paying moving forward.”

The commitment comes amid some of the highest cost pressures being faced by the province’s auto insurance system.

Citing information from the General Insurance Statistical Agency (GISA), IBC noted: “Legal costs now account for a greater portion (20%) of the auto insurance premiums drivers pay in Alberta than anywhere else in Canada. Costs from litigation and legal fees are twice as high as Ontario, and over three times as in some Atlantic provinces.

“GISA data also shows that Alberta ranked second in Canada for the amount spent per claim to repair vehicles as well as the frequency at which vehicles are stolen. With auto insurance premiums already among the highest in the country, rates in Alberta are likely to rise if these pressures are not urgently addressed by the province.”