March 28, 2005 by Canadian Underwriter
The Alberta government says insurers are voluntarily filing reduced rates for private passenger auto insurance, making it unnecessary for reductions to be mandated.
Insurers representing about 50% of the market have already filed for reductions of between 4%-7% with the province’s Auto Insurance Rate Board (AIRB). Those reductions will take effect between April 1 and July 1, 2005.
The AIRB adds that other insurers have expressed their intention to file for reductions in the near future.
“”With major insurers voluntarily reducing premiums on average in line with the board recommendation, it’s not necessary to mandate reductions,” says AIRB chair Alf Savage. “At this time the board is recommending the [Finance] minister accept reductions that are voluntary and reflect the individual positions of insurers, rather than mandate reductions.”
The AIRB will continue to report to Finance on other insurers filing for reductions, with Savage noting these reductions will be factored in the formal review of the province’s auto insurance rates set for this summer. He adds that the premium freeze currently in place will remain in effect until October, 2005, and as such no filings for rate increases will be considered during the review.