Edmonton, Alberta — According to a recent report from CBC News, the United Conservative Party (UCP) in Alberta is set to announce that it’s going to let auto insurers in the province raise insurance premiums, while also removing personal injury lawsuits and legal claims.
Specifically, as noted by the news source, the province’s government is set to announce the changes later this week, with Premier Danielle Smith having endorsed moving Alberta to a predominantly “no-fault” insurance system, according to multiple industry sources who spoke with CBC News.
This change, if passed, would mark the biggest reform in the province in decades. Easing the current rate cap would allow insurers to charge more for automotive insurance.
While CBC News could not confirm what rate cap would be set for 2025, two sources told the news source that they understand that cabinet this month discussed doubling the rate cap to permit 7.5 percent increases.
“Our focus is on reducing premium costs for Albertans and ensuring that they receive faster and better care following an accident,” said press secretary Justin Brattinga in an email to CBC News.
While adjustments to the rate cap will ultimately increase prices early in the year, the transition to bring in no-fault procedures will take longer to implement and bring in consumer savings, industry sources said.
Aaron Sutherland, vice president of the Insurance Bureau of Canada (ICBC) further told the news source that “on top of that, insurance companies would need one or two years to implement these changes.”
For more information, click here.
