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News & Press: Advocacy

Auto Advocacy—IBAA Has Your Back

November 29, 2018   (1 Comments)
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IBAA realizes that the insurance industry is struggling to justify writing further auto business in Alberta. Insurers are cancelling broker contracts, limiting or eliminating consumer payment options, and withdrawing from physical damage coverage for drivers with difficult records. IBAA has fielded calls from disgruntled consumers and brokers alike. However, there is the perception out there that this has all fallen on deaf ears and that IBAA has been silent. Nothing could be further from the truth. IBAA will always be listening and advocating on behalf of our member brokers and for the protection of the consumer choice and fair pricing.


As most of you know, we launched an extensive letter-writing campaign between our insurance broker members and individual MLAs that started in July 2018. Thanks to all of you throughout Alberta who have taken time to write your MLAs, over 1,300 letters have been sent by our members to date. (See the letter.)


IBAA has also been working diligently with government, opposition parties, IBC, Alberta Counsel, and industry stakeholders to find a way to alleviate some of the pressures facing insurers, brokers, and consumers. The government has acknowledged our position and the concerns in the marketplace. Initially, the government had denied any rate increases beyond November 30, 2018. As a result of our working in tandem with IBC, the government has agreed to provide an additional 5% rate increase for the period of December 1, 2018, to August 31, 2019. (Read the ministerial order.) As well, the government has provided us with two exemptions to the 5% rate increase:

  1. New business—to be defined
  2. Auto insurers facing serious financial hardship

We are pleased to have some recognition of the issues on the part of the government, but we also need acknowledgement from the opposition parties, so we have spent a great deal of time briefing them. This action is critical since we face an election next year and all parties need to know how the auto insurance predicament is impacting their constituents.


IBAA believes consumers are entitled to choice in insurance at a fair market price. Insurance brokers are the vehicle by which this is achieved. We will continue to work collaboratively with IBC as well as the government to that end now and into the future. Stay tuned—we will keep you apprised of further developments.


If you would like further details on our work thus far, the link below provides you with the dates and times of all our meetings, and the parties involved.


While not an intrinsic part of our advocacy, we thought those brokers pressed to add additional fees for auto would like to know that the Facility Association is currently drafting a new Additional Fees Bulletin for Alberta.


Comments...

Thom Young (Full first name: Thomas Clifford John) says...
Posted December 19, 2018
I sure would like to see the definition of the all comers rule clarified by the Government and the direction to them to stop limiting the coverage they are willing to provide. The rule was established to apply to all coverage's for which filed rates exist and the company's were given the non grid risk sharing pool as an outlet where they can cede the business they don't wish to write. Participation is not limited to section A and B coverage, the all comers rule applies to all coverage for which rate exists. The argument that the non grid risk sharing pool is full does not wash, any company who has reached their capacity by market share to cede to the non grid pool may make application to the Facility association for increased limits to respond to the market demands only one application has been made to date. I wish someone from the SOI office would have a chat with the insurers to review the regulations with them.

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