Not addressing auto reform quickly or
wholistically will increase taxes and hurt rural Albertans
EDMONTON, AB, May 1, 2024 /CNW/ - While it is encouraging to
see government action towards addressing the auto insurance file,
the two auto reform reports released on Friday, April 26, 2024, provide a potentially
misleading hope for consumers. If the government does not take a
comprehensive approach to reform and instead decides to adopt a
public auto system to chase the lowest premiums possible, they will
damage Alberta communities and be
forced to ask for additional taxes from Albertans who are already
struggling to make ends meet.
When considered from a community-based economic perspective,
implementing a public auto system would do far more harm than good.
A shift toward public auto would result in massive job losses
across the province and deprive rural communities of the additional
functions brokers fulfill, as many small communities rely on their
local brokerage to provide registry and financial services as well.
A public system would also burden Albertans with a
multi-billion-dollar tax bill to implement and maintain.
An optional care-based model is a much more wholistically
sustainable and impactful choice for reform, without the additional
monetary and social costs of public auto. Legal fees are one of the
main driving factors behind inflated premiums. Providing consumers
with the option to sue on minor injuries removes unnecessary legal
fees from the system, which immediately alleviates cost pressures.
Albertans deserve a care-based approach to minor injuries, while
still maintaining the right to sue for catastrophic injuries. This
system will improve the rate of recovery, reduce litigation costs,
and reduce the strain on the court and health care system.
IBAA believes reform needs to happen as quickly as possible in
order to give Albertans time to recover from the failing system
they have been struggling under for so long. It is time for the
government to act and provide sustainable solutions well before
their targeted deadline of this fall. We are positioned as
representatives of Albertans, to continue to provide feedback to
government officials and advocate for lasting and sustainable
change. We urge immediate action and a wholistic approach as we
enter this critical period for Alberta auto reform.
IBAA is a non-profit trade association
representing over 5300 broker members working through about 160
individual brokerages in communities across Alberta, the Yukon, the Northwest
Territories, and Nunavut.
SOURCE Insurance Brokers Association of Alberta