FAIR Alberta offers no solutions to improve auto insurance affordability

EDMONTON, AB, April 4, 2024 /CNW/ - Today, Fair Alberta Insurance Regulations (FAIR Alberta) released the results of its recent survey: Public Perceptions of Alberta's Automobile Insurance System. Following the release of the survey findings, Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC), issued the following statement:

"The consumer polling released today by FAIR Alberta confirms there is little support for a move to a no-fault insurance system in Alberta. These systems, operated in other provinces by state-run insurance monopolies, have proven disastrous for drivers and taxpayers. One only needs to look across the Rockies to see the tragic stories coming out of British Columbia's public no-fault system to understand how people injured in collisions are denied access to justice and are left to fight a government monopoly insurer to get the compensation they deserve.

What's missing from FAIR Alberta's analysis is any focus on solutions that would improve affordability for drivers. The status quo in Alberta is simply not sustainable.

The legal costs underlying auto insurance coverages have skyrocketed in recent years and now account for 20% of mandatory premiums. These costs must be addressed to improve the price drivers are paying. That's why IBC has put forward its Enhancing Care & Expanding Choice proposal to the government as a solution that would give drivers more control over their coverage, with the ability to save and to choose new coverage options, while doubling benefits to those injured in collisions. Combined with regulatory and tax improvements, this proposal could save drivers an average of $325 annually on their auto insurance."

Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up the vast majority of Canada's highly competitive property and casualty (P&C) insurance market.

As the leading advocate for Canada's private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow.

IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses.

For media releases, IN Focus articles, or to book an interview with an IBC representative, visit ibc.ca. Follow us on LinkedIn, X and Instagram, and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC. We're here to help.

SOURCE Insurance Bureau of Canada