“we know the pause is doing, what caps and pauses do. it’s preventing an uptick in rates,” horner said.
“but i would say that it’s something that we can’t leave on forever. it was meant to be a short-term affordability measure, right at the peak of the affordability crisis.”
nate horner, president of treasury board and minister of finance.
gavin young
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postmedia
‘unfortunate development’: executive concerned about withdrawal
the withdrawal is a negative for both albertans and insurance companies, said aaron sutherland, a vice-president with the insurance bureau of canada, the industry’s national association.
“this is a real unfortunate development for drivers in alberta,” sutherland said.
“the insurance industry certainly isn’t immune to the inflationary impacts that we’re seeing right across the economy. we’ve seen double-digit increases to the costs of repairing and replacing vehicles after collisions. legal costs in the system continue to surge. those underlying pressures are creating real challenges, with insurers unable to account for them in their rate.”
it’s possible other insurers will also opt to withdraw from offering vehicle coverage in alberta, sutherland said, voicing concern this could turn into a trend moving forward.
he argued the alberta auto insurance market having fewer options for drivers will ultimately lead to increased prices for consumers.