The provincial government has announced a new advisory committee to examine automobile insurance in Alberta - Photo by Charles Lefebvre

By Charles Lefebvre

Auto insurance

Province creates committee to examine automobile insurance

Dec 18, 2019 | 11:12 AM

EDMONTON, AB — The provincial government is looking at ways to improve auto insurance in Alberta.

Finance Minister Travis Toews announced a new committee that will examine auto insurance in Alberta, and come up with solutions to help lower prices for Albertans.

“These committee members will inform our decision making process, as we work to create meaningful automobile insurance reform,” said Toews during a news conference in Edmonton.

Chairing the committee is Chris Daniel, who is currently the consumer representative on the Automobile Insurance Rate Board.

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Other committee members include Shelly Miller, who will serve as a legal expert, along with Dr. Larry Ohlhauser as a medical expert.

This fall, the United Conservative Party lifted the cap on insurance rates put in place by the NDP, saying it was not a solution to insurance prices.

“Under the cap, many Albertans had difficulty accessing key insurance components, such as collision and comprehensive coverage, and payment plans,” said Toews. “And many Albertans experienced increases in their automobile insurance rates well above five per cent. Our government is committed to finding a real solution to our automobile insurance challenges.”

The committee will examine the current insurance system to find out what is working and what isn’t, and will engage with stakeholders from both the public and the insurance industry. Toews says all options are on the table when it comes to insurance.

However, Daniel says the panel will not be examining a model similar to the Saskatchewan Auto Fund, the compulsory public auto insurance board in that province.

“At this point, it is not an option that we’re looking at,” he said.

Added Toews, “At this point, we’ve instructed the committee to look at every model option out there, but basically under the premise of a privately delivered model. But, certainly, every model within that context is on the table.”

During the news conference, Toews was asked about another the government forming another committee and panel to examine an issue.

Panels have previously been formed to examine supervised consumption sites, ways to reduce red tape and to examine the state of Alberta’s finances.

Toews says the committees and panels are necessary to make the right decisions.

“I really believe that we owe it to Albertans to make informed decisions, and to assemble a very credible, experienced committee like this, I believe we will be best informed to make decisions around automobile insurance,” he said.

The committee is expected to deliver a report in the spring of 2020, said Toews.