15Mar 2023 by Charles E. Price
Rate Cap Clapback: IBC says Alberta auto insurance rate cap ‘does nothing to improve affordability’

Rate Cap Clapback: IBC says Alberta auto insurance rate cap ‘does nothing to improve affordability’

INSURANCE
Edmonton, Alberta — If there are two things the insurance industry and the “Real Housewives” series have in common, it is a stupefening propensity for drama and scandal, as has unfolded Thursday when the Alberta government announced an immediate cap on auto insurance rates through to the end of the year. Announced in a joint release from the province's ministry of finance and affordability and utilities, the Alberta government says it will be “taking action on insurance” through this rate cap, as well as a mandate for insurance companies to allow customers to pay premiums through payment plans. "Affordability is a primary challenge facing many Albertans as rising inflation makes it challenging for many to afford necessities, including auto insurance," said minister of affordability and utilities, Matt Jones. "We are…
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14Mar 2023 by Charles E. Price
Alberta government’s decision to freeze auto insurance rates

Alberta government’s decision to freeze auto insurance rates

INSURANCE
EDMONTON, AB, Jan. 26, 2023 /CNW/ - Today's announcement of the government's decision to freeze insurance rate filings for private passenger vehicles is disappointing for insurers and, most importantly, for consumers. A rate freeze does nothing to improve the affordability of auto insurance in the near term and only pushes today's challenges down the road.Insurance Bureau of Canada (CNW Group/Insurance Bureau of Canada)Rate caps have resulted in significant negative consequences for consumers when undertaken previously in Alberta and elsewhere. During Alberta's last provincial rate cap from 2017 to 2019, consumers faced challenges securing the coverage they needed, as insurers were forced to take action to remain viable and continue paying customers' claims. Premiums still increased by 12% when the rate cap was in place.in Californian, drivers are also living through…
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12Mar 2023 by Charles E. Price
Insurers decry Alberta’s auto insurance rate freeze decision

Insurers decry Alberta’s auto insurance rate freeze decision

INSURANCE
But this rate stamp has been received poorly by the industry. “A rate freeze does nothing to improve the affordability of auto insurance in the near term and only pushes today's challenges down the road,” a statement from the Insurance Bureau of Canada (IBC) said. IBC's statement, which was alberta-governments-decision-to-freeze-auto-insurance-rates">released on the same day Alberta put a hold on rate increases, also explained that rate caps have resulted in “significant negative consequences” for consumers, pointing to previous instances in Alberta's history. “During Alberta's last provincial rate cap from 2017 to 2019, consumers faced challenges securing the coverage they needed, as insurers were forced to take action to remain viable and continue paying customers' claims. Premiums still increased by 12% when the rate cap was in place.” The Insurance Brokers Association…
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