We believe this move by our current government, to let the rate cap expire, will greatly improve the health of automobile insurance in our province.
Claims frequency continues to rise significantly as does average claims cost. Distracted driving and costs associated with repairing newer, tech enhanced vehicles, are certainly contributing factors, among other more complicated challenges.
The reality is that the rate cap lead to the fast paced evaporation of the availability of automobile insurance for many Albertans.
This move should help alleviate growing pressure on reduced market capacity to insure segments where claims costs far exceeded premiums collected and allow insurers to reallocate and adjust the collection of those premiums, which will provide all Albertans with options and choice.