Insurance Bureau of Canada (IBC) Applauds Government on Auto Insurance Review
Saturday, December 21, 2019 8:00:00 AM
- Consumers should remain the focus of the review and eventual reforms. -
Today, the Alberta government announced the creation of an advisory committee that will review options to fix the auto insurance system. The advisory committee will report back to the government in the spring 2020.
"IBC and the insurance industry have heard loud and clear from consumers that Alberta's auto insurance system isn't working," said Celyeste Power, Vice-President, Western, IBC. "Alberta's 3 million drivers have said they want more affordable premiums, more choice and care they can count on when they need it. We encourage all stakeholders that participate in the government's review to focus on what consumers want and, frankly, deserve."
IBC, on behalf of Alberta's auto insurers will participate in the consultation process. In these discussions, IBC will focus on what they have heard from consumers, which show*:
- 69% of Albertans agree that insurers should be more innovative, offer more products and do more electronically
- 87% of Albertans agree that drivers should have more control over their rates based on how they drive
- 86% of Albertans support improving care and treatment options for people to recover from motor vehicle collisions
The industry is hopeful that the government and stakeholders will come together quickly to find solutions to the issues facing the auto insurance system so that consumers can count on stable premiums in the short-term. IBC will also participate in the review, by providing a submission and offering assistance to the committee.
"Alberta's auto insurance system used to be the envy of other provinces, working well for over a decade. Unfortunately, increases in payouts for minor injuries has led the average claim size to increase by nearly 10% per year. We want to work with stakeholders to help focus the system on what consumers want and are encouraged that the government is undertaking this important review," added Power.
SOURCE: Insurance Bureau of Canada