UCP MAKING ALBERTANS PAY FOR HEFTY INSURANCE PROFITS
EDMONTON – At the same time Alberta motorists are paying 24 per cent more under the UCP Government for auto insurance in 2020, a new report suggests the very companies offering coverage stand to save $745 million.
The findings come from HelloSafe.ca, a company that provides comparative auto-insurance quotes to consumers. The report comes on the heels of an official government report from the Superintendent of Insurance of Alberta that found auto insurance companies brought in nearly $1.15 billion more in insurance premiums than they paid out in claims in 2019.
“It’s clear that the insurance industry is not suffering.” said Alberta NDP Service Alberta Critic Jon Carson. “The UCP removing the cap on insurance is placing the financial burden directly on Albertans, many of whom are suffering financially this year.
“Our Caucus is calling for the UCP to immediately freeze insurance rates and then actively assess whether we should be cutting motorists a break as is occurring in other provinces.”
British Columbia has announced it will decrease insurance rates for drivers by $400. Similarly, Manitoba provided insurance relief of $140-160 per driver in May, and another $100 in December.
The HelloSafe.ca study estimates that insurance companies will save $231 million in claims in Calgary alone, the highest reduction in claims over 2020 compared to the rest of the province. Based on official insurance industry data from 2019, the automobile insurance industry is now expected to bring in approximately $6.73 billion in premiums and pay out only $3.53 billion in claims in 2020, resulting in a gross margin of over $3.2 billion.
“It makes sense that there would be fewer claims over 2020,” Carson said. “People were driving less as they tried to stay closer to home due to the COVID-19 pandemic. However, they still need to insure their vehicles, they still need to make sure they are covered when out getting groceries or going to work.”
Alberta NDP Critic for Finance, Shannon Phillips said, “It’s clear Jason Kenney is not concerned about Albertans’ pocketbooks. While other governments are making the logical decision to provide relief during these dire times, Jason Kenney is finding ways to help an already profitable industry make more on the backs of Albertans doing everything they can to make ends meet.”
“Jason Kenney already gifted profitable corporations with a $4.7 billion giveaway. Now he’s giving the insurance industry even more because he’s more concerned with the pleas of his insider friends than the cries of Albertans who can no longer afford to drive.”