Alberta Finance Minister Nate Horner said he thinks a report by the Alberta Superintendent of Insurance (ASI) finding the province’s auto insurance industry is at risk because of the rate cap is accurate.While the ASI looked at 2023 data, Horner said 2024 numbers would make the situation worse. “So I would agree,” said Horner at a Tuesday press scrum. “There would need to be short-term reforms while we work towards our long-term reforms.” In response, he said he hopes to have more to say about that soon. A report published by the ASI on Monday warns Alberta’s auto insurance market is at risk, with financial losses for insurers and reduced competition due to the government-imposed rate cap..Report warns Alberta’s auto insurance market 'deteriorating' under rate freeze .The ASI revealed about three-fifths of auto insurers in Alberta experienced financial losses last year because of the rate freeze — a policy that was extended in 2024 with a 3.7% rate cap for good drivers.It said the financial performance of its auto insurance sector has worsened substantially since the rate freeze was implemented, with no improvement expected in 2024 if it remains in place. Horner followed up by saying people’s premiums have to reflect the claims being paid. “The caps are artificially keeping premiums low at this time, and it’s not reflective of what’s being paid out,” he said. “I agree changes will have to come, and they’ll have to come soon.” While no decision has been made, he said Alberta Treasury Board and Finance is having ongoing conversations, but it has to go through the cabinet processes. He added the changes should be coming this fall session. The Alberta government said in 2023 it will be implementing reforms to address high auto insurance rates as it explores long-term solutions..UPDATED: Alberta government reforms auto insurance system .“We know that Albertans have been struggling with their auto insurance rates and that’s why we’ve been working hard to find solutions,” said Alberta Premier Danielle Smith. “I’m pleased that we can work to bring forward these new measures to help.”
