June 22, 2004 by Canadian Underwriter
Alberta’s auto reform plans have received the final stamp of approval from the provincial Cabinet, setting the launch date for October 1.
A committee of legislators is being put together to ensure a smooth transition to the new system, which includes a premium grid. The government has promised rates will drop 5% for 95% of drivers, although others could see rates drop as much as 75%. This is because traditional rating criteria such as age and gender are no longer allowed.
The current rate freeze will stay in place until the summer of 2005 as well.
Among the new program’s features, public insurers such as those in Manitoba, Saskatchewan and B.C. will be allowed to sell insurance in Alberta.
Following the implementation of reforms, the committee of legislators will report back to the Minister of Finance on the system in September 2006.
A government press release calls on consumers not to contact their insurer or broker until after October 1 to find out how their premium may be adjusted, to give the industry time to educate itself and change systems to reflect the new regulations.