July 27, 2007 by Canadian Underwriter
The Automobile Insurance Rate Board (AIRB) has decided to maintain premiums for mandatory auto insurance in Alberta at 2006 levels, based on the results of its annual insurance rate review.
“Alberta consumers continue to have access to fair and affordable auto insurance,” AIRB board chair Alf Savage said in a press release. “Insurance premiums for mandatory auto insurance remain 18% lower than they were before auto insurance reforms were implemented in 2004.”
The AIRB noted its decision was made in the context of rate decreases over the course of several years.
When automobile insurance reforms went into effect on Oct. 1, 2004, Alberta drivers received a 5% reduction, the AIRB noted in its press release. On July 1, 2005, rates were reduced another 6%.
The initial annual review process in 2005 further reduced premiums for mandatory coverage by 4%, followed by a 3% reduction in 2006.
The AIRB said in making its decision to hold 2007 rates at 2006 levels, it considered input from Albertans, the board’s consumer representative and insurers. Two days of public meetings were held in June.
The AIRB’s mandate is to set premiums for mandatory auto insurance coverage for private passenger vehicles, monitor premiums for optional coverage, and review and approve rating programs for new insurers entering the Alberta market. The AIRB annually sets the maximum premiums for mandatory coverage that all automobile insurers charge.
Each year, the rate board is required to announce any industry-wide adjustment that results from its annual auto insurance rate review by Aug. 1.