Thread by @albertaNDP

According to a new official government report from the Superintendent of Insurance, Alberta auto insurance companies remained highly profitable last year despite claims by the UCP they were suffering due to the rate cap - an argument used to justify removal of the cap.

#ableg

The recently released 2019 Superintendent of Insurance Annual Report showed that the automobile insurance industry pocketed nearly $1.15 billion more in insurance premiums than they paid out in claims — an 18 per cent increase over the $974 million reported in 2018.

Kenney’s own government report on insurance proves his narrative about the struggling industry is pure fiction. Before the rate cap was lifted, industry margins were growing at the expense of drivers, and now they’re being allowed to price gouge Albertans to expand profits.

While in government, we introduced a 5% cap on auto insurance premium increases. However, the rate cap was not renewed by the UCP in the fall of 2019 after Premier Kenney’s former Chief of Staff, Nick Koolsbergen, lobbied the UCP on behalf of the insurance industry to remove it.

Data compiled by Lower Rates in September showed that auto insurance premiums increased by an average of twenty four percent in 2020. This increase came at a time during the COVID-19 pandemic when Albertans were driving less due to public health restrictions.

In contrast, the provincial NDP government in British Columbia has announced it will decrease insurance rates for drivers by 15%. Similarly, Manitoba provided insurance relief of $140-160 in May and another $100 in December.

#abpoli #mbpoli #bcpoli