UCP MUST IMMEDIATELY FREEZE INSURANCE RATES TO AID ALBERTA DRIVERS
CALGARY – The Alberta NDP is calling on UCP Leader Danielle Smith to take decisive action on skyrocketing costs for Albertans, starting with an immediate freeze on auto insurance payments.
“We know that, for so long, UCP insiders have done what’s right for their insurance industry friends and not for Albertans relying on their vehicles to get to and from work or pick up their kids from school,” said NDP Finance Critic Shannon Phillips.
“Yesterday, Danielle Smith sought a pat on the back from Albertans for signalling she may undo some of the devastating cuts her own UCP Government levelled onto vulnerable Albertans years ago. Well here’s a big one — lifting the cap on auto insurance led many Alberta drivers to face premium hikes of 30 per cent or more. UCP policy decisions have led to record margins for insurers, and record pain for drivers — it’s time to put a stop to that.”
According to the latest Superintendent of Insurance Annual Report, Alberta auto insurance companies collected $2.45 billion more in premiums than they paid out in claims in 2021, an 86 per cent increase in their margins year-over-year. This equates to $777 per vehicle, based on Statistics Canada’s estimate of 3.15 million consumer vehicle registrations in Alberta.
Alberta’s largest automobile insurer, Intact Insurance Company, alone brought in $911 million in premiums, while paying out just $467 million in claims.
Phillips noted that families are facing inflationary pressures not seen in four decades and that is outpacing wage growth by nearly four times.
“Albertans are working harder and harder, and still falling further and further behind,” she said. “I was proud to stand with Rachel Notley when she recently committed that, if elected to serve, an Alberta NDP Government will put a freeze on auto insurance rates.
“I’m saying today that Alberta drivers shouldn’t have to wait six months before Danielle Smith gets the nerve to finally seek a mandate from all Albertans — put in a freeze on auto insurance today,” concluded Phillips.