Zero adjustment needed for rates in Alberta: government’s actuary

Preliminary industry-wide auto rate adjustment indications for Alberta hover around 0%, according to the province’s actuary, Oliver Wyman.
The actuarial company estimates the required average auto premium to be $564 on the low frequency forecasts, $578 in the mid range (roughly the same as last year) or $592 on the high range.
The 2010 industry-wide adjustment (IWA) estimated street premium – the estimated average premium currently paid by consumers – is $583, compared to $610 last year.
“When we combine our estimate of the required average premium with our estimate of the street premium, we have three (3) preliminary IWA indications all hovering around zero percent,” Ted Zubulake, managing director at Oliver Wyman, said during a presentation to the Alberta Automobile Insurance Rate Board.
Underlying Oliver Wyman’s analysis is the assumption that no changes to the cap will be made by the Alberta government as a result of the reviews that are thought be undertaken this year with respect to the cap.