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Alberta to review auto premiums following 2004 industry earnings release


February 22, 2005   by Canadian Underwriter


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Alberta’s Auto Insurance Rate Board is set to review auto insurance premiums “to determine if further reduction for drivers are recommended”, according to a press release from the office of the province’s finance minister, Shirley McClellan.
While a formal review will commence in June, as prescribed by auto insurance reforms which came into force last October, the government is asking the AIRB to look at potential “interim relief” for drivers.
McClellan says the review was prompted by news late last week of insurer profits, which in her view indicate “that market is solid”. She adds that she has adked the board to “examine the system for excess profits from compulsory insurance sales”. She says any reductions would be on this government-mandated compulsory coverage (i.e. third-party liability and accident benefits coverage) and not on optional coverage.