Alberta auto insurance – major insurers reaffirm commitment despite ‘significant concerns’
Alberta auto insurance – major insurers reaffirm commitment despite ‘significant concerns’ | Insurance Business Canada
Motor & Fleet
Alberta auto insurance – major insurers reaffirm commitment despite ‘significant concerns’
They echoed concerns over the current rate freeze
Motor & Fleet
By
Gia Snape
Four players in Alberta’s personal auto insurance market have reaffirmed their commitment to serving drivers in the province, following the announcement of an insurer’s withdrawal due to an ongoing rate freeze.
In statements made to Insurance Business, Aviva Canada, Wawanesa, Desjardins, and Co-operators vowed to continue working with their customers and other industry stakeholders in Alberta.
“We want to continue to offer Albertans choice and affordable auto insurance. But as we know, insurers have been facing significant challenges in the province for many years now,” said Susan Penwarden, managing director, personal lines at Aviva Canada.
“We’ll continue to work with the new provincial administration to balance this, including getting the industry back to a healthy spot.”
Graham Haigh, SVP and chief operating officer – West at Wawanesa, said the company shares the “significant concerns” that insurers and brokers in Alberta are raising about the negative impacts of the rate freeze.
He added that the continuing freeze “will only make it harder for Albertans to get the insurance they need at a reasonable price.”
“As Wawanesa’s largest market by premium volume, we are committed to working side-by-side on behalf of our members with both the Insurance Brokers Association of Alberta and the Insurance Bureau of Canada for product reform and to keeps rates fair in the province,” Haigh told Insurance Business.
Desjardins said it continues to work with provincial governments to find long-term solutions that will benefit consumers.
“We continue to support our clients and reassure them that we are here for them,” it added.
Meanwhile, Co-operators addressed the negative impact of the auto insurance rate pause on Albertans.
“We are committed to the financial security of Canadians and our communities,” the insurer’s statement said. “We have a long history of working with all orders of government to achieve solutions to complex challenges. We have a strong footprint in Alberta and continue to work collaboratively with the Alberta government to address the systemic challenges within the provincial auto insurance system.
“The current rate pause is having a negative impact on consumers across the province, restricting accessibility, availability, and choice. Transformational reform is necessary to address the issues that are putting pressure on rates.”
According to the Alberta Automobile Insurance Rate Board, there were 65 insurance companies offering private personal vehicle insurance (PPV) as of 2022. PPV policies make up three-quarters of Alberta’s auto insurance market.
Broker association warns of more fallout
Alberta’s finance ministry has declined to disclose the insurance company that has provided notice of its exit from the province’s auto insurance market, citing confidentiality rules.
The company said its decision was due to an ongoing freeze in insurance rates for private passenger vehicles that Alberta implemented at the start of the year.
“The ongoing concern is that the withdrawal of one carrier puts additional pressure on the remaining insurers to pick up the slack to ensure the drivers that are being cancelled have adequate coverage,” the association said in a statement.
The IBAA also repeated calls for lasting reforms in the province’s auto insurance system.
What are your thoughts on the shake-up in Alberta’s auto insurance market? Tell us your thoughts below.
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