Alberta lawyers’ group says no need for increase in vehicle insurance premiums

Oct 7, 2021 | 4:24 PM

GRANDE PRAIRIE, AB. — The Alberta Civil Trial Lawyers Association (ACTLA) says an increase for private vehicle insurance premiums is not needed.

Grande Prairie lawyer Owen Lewis, a member of the association’s executive, recently went before the Alberta Insurance Rate Board to advocate for a freeze in insurance premiums for this year.

Lewis says the (ACTLA) hired an actuarial consultant to look into figures presented by insurance companies when they go before the AIRB looking for premium increases.

“Seeing the stability in claims costs over the course of the last, at least, four years and the significant reduction in claims costs that occurred with COVID back in 2020, we just felt that increased auto insurance premiums weren’t warranted.”

He adds the argument that claims costs are skyrocketing is not true. Lewis says claims costs, when adjusted for inflation, have remained stable and that insurance company profits have increased dramatically.

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“From 2016 to 2020, the claims costs were essentially level. That’s also the time when we were experiencing these large increases in auto insurance premiums.”

Lewis says the rate board recently allowed for increases in what he calls benchmark rates.

“Now, that doesn’t necessarily mean that insurance rates will be increasing because each individual company has to go to the AIRB and justify any rate increases,” he said.

“From the anecdotal information that I’ve received so far, it does appear that there are some rate reductions that are occurring and my hope is that that continues.”

Lewis says he wants to see adequate compensation for those hurt in crashes and fair auto insurance premiums for those who are not in a crash.

He adds he does not want to see a situation that allowed insurance companies to run up a billion-dollar profit like they did in 2020.

by Curtis Galbraith