April 8, 2013 by Canadian Underwriter
Alberta’s Automobile Insurance Rate Board (AIRB) recently announced it is starting its annual review on premiums for basic auto coverage in the province and is asking stakeholders who want to participate in the process to file a letter of intent by May 1.
AIRB’s roles include the regulation of premium levels for third-party liability and accident benefits and to approve rate plans for carriers who want to start selling auto coverage in Alberta.
In a press release April 3, AIRB said it intends to consult with interested stakeholders and will hold a public meeting in Edmonton June 11.
“All interested parties wishing to present to the Board during the public meeting must file a letter of intent by May 1, 2013,” AIRB stated, adding the letter should include a list of the issues they want to present to the board and a description of how these issues apply to the criteria that must be considered by the board.
AIRB will select presenters and notify them by May 6. Presenters then have until May 31 to file their submission.
“As an alternative to making a presentation during the public meeting, stakeholders are invited to make a written submission to the Board on issues related to the annual adjustment,” AIRB stated last Wednesday. “Written submissions must be received by May 31, 2013. Submissions will be posted to the AIRB website on June 12 following the public meeting.”
AIRB says its review will “collect input on whether the premium level for basic automobile insurance coverage needs to be adjusted given the claims experience of the insured public in 2012 and expectations for the year commencing November 1, 2013.”
AIRB added this year’s public meeting will focus on loss trends and the impact of the “economic climate” on claim costs.
The board is scheduled to release its decision by July 25.
“The profit provision will remain at 7% of premium for the 2013 industry-wide adjustment,” AIRB stated.
In addition to regulating premiums for basic coverage, AIRB also reviews carriers’ notices for offset adjustments, in which they adjust individual variables under their rating programs by up to 10%.