Minister Toews, along with expert advisory committee members Chris Daniel, Shelley Miller, QC and Dr. Larry Ohlhauser - Govt of Alberta

By Dori Modney with files from Government of Alberta

Provincial government won’t cap rates, but strikes panel to review auto insurance

Dec 18, 2019 | 2:44 PM

EDMONTON — In an effort to ensure the industry remains viable and drivers get affordable coverage, the provincial government has launched a review of auto insurance

While Albertans are paying some of the highest rates in Canada, Finance Minister Travis Toews says some are having trouble getting critical protections, such as comprehensive and collision coverage.

For the last few years, auto insurance rates have been capped at five per cent, but the government did not renew that cap in August and some drivers have since reported getting notices of steep rate hikes in the new year.

Given a rise in payouts due to issues including car theft, injury claims, and high repair costs tied to more expensive technology in vehicles, insurers contend they were losing money in the province due to the cap.

A three-member committee has been tasked with finding solutions that work for all parties within the existing privately delivered system. The panel includes Chris Daniel, who is in his second term as the consumer representative on the Automobile Insurance Rate Board. Daniel will chair the committee, which include Shelley Miller QC, who has specific expertise in auto insurance reform and medical expert, Dr. Larry Ohlhauser, the chief medical advisor to the superintendent of insurance.

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The expert committee will hear from industry stakeholders, and legal and medical experts, as well as other Albertans, during the information gathering stage, to develop recommendations on how government can improve the province’s automobile insurance system.

There are four main principles that will guide the committee, as they look at Automobile Insurance reform:

— Fair, accessible and affordable automobile insurance for Albertans.

— Timely and appropriate outcomes when claims are made.

— A private-sector delivery model for automobile insurance.

— A viable and sustainable automobile insurance system.

The committee will report back to government in the spring 2020 legislative session, ao the government ca make necessary changes to ensure that automobile insurance is affordable, accessible and sustainable.