Alberta surveys residents in anticipation of auto insurance reform

Alberta has launched a survey to find out the opinions of its residents regarding the automobile insurance system, which the Alberta government plans to reform this fall. The goal is to make it more affordable, with Albertans having among the highest premiums in Canada.

To this end, the province invites residents to respond to an online survey, which is open until June 26.

We’re asking Albertans what changes, if any, they want us to make to the system to achieve long-term relief rather than short-term measuresexplains Justin Brattinga, press secretary to Nate Horner, Minister of Finance of Alberta.

What can this survey do?

The survey asks Albertans in particular what they think of the five pillars on which the province intends to rely to reform its automobile insurance system, namely: financial accessibility, stability, simplicity, targeted care and responsibility.

They were also asked other questions, for example: have you been injured in a road accident in the last five years? Do you trust your insurer to support you properly in the event of an injury?

According to Aaron Sutherlandfrom the Insurance Bureau of Canada (IBC), this public consultation “focuses on the balance that Alberta drivers want to see between affordability, maintaining and increasing the level of care, but also the possibility to prosecute and hold at-fault drivers responsible for collisions.”

Martin Halek, associate professor of risk management and insurance at the Haskayne School of Business at the University of Calgary, believes it is important for Alberta drivers to know that it is not possible to check all the boxes and compromises have to be made.

Which insurance model(s) would be best?

The provincially commissioned studies, carried out by actuarial consultant Oliver Wyman and management consultancy Nous Group, examined seven insurance models (public, private and hybrid) in different provinces and Australia, as well as the proposed by the BAC.

Wyman’s analysis suggests Alberta drivers could see the biggest savings on their premiums if the province adopted a public insurance model like British Columbia’s.

She indicates that a hybrid system like that of Quebec, where bodily injury is covered by a public insurer, but vehicle damage is covered by private insurance companies, could also save money.

The Nous Group, which was tasked with studying the economic impacts of the systems, concluded that moving to a public model would take up to two years and cost nearly $3 billion.

According to him, maintaining a private system could have the least economic impact.

THE BAC has publicly expressed concerns about Wyman’s calculations and is proposing a system similar to that of New Jerseyin which drivers have more choice in the type of coverage, the ability to take legal action and, therefore, the amount they pay.

THE BAC and the consultant, however, agree on the fact that covering legal costs could make a big difference in Albertans’ premiums.

Skeptical residents

While waiting to know the insurance model that the provincial government will choose, Albertans doubt whether their comments will be taken into consideration.

Yolanda Engel of Edmonton is one of those skeptics, who wants the option to take legal action if she is seriously injured in an accident.

But even though the province has already said it’s one of the systems it’s considering, Engel doesn’t see the point in responding to the survey.

Lori Williams, associate professor of political studies at the University Mount Royal, says he understands this skepticism. According to her, the United Conservative Party government has a habit of hearing one thing during public consultations and doing exactly the opposite.

With information from Karina Zapata