Laurie in Question Period
May 6, 2008: Automobile Insurance
Ms Blakeman: Thank you very much, Mr. Speaker. On the front page of Thompson’s World Insurance News the Insurance Bureau of Canada is celebrating its victory over the Alberta government: “IBC secured government support for the elimination of the industry wide adjustment, persuaded the rate board to increase the profit provision to 7% in 2008 and 9% thereafter and made progress” with other issues. My question is to the minister of finance. Can the minister explain how the Automobile Insurance Rate Board is an effective regulatory agency when it is so easily persuaded by the IBC to increase profit provisions?
Ms Evans: Mr. Speaker, on June 17 and 18 the Automobile Insurance Rate Board will review the rates. They will determine whether or not they are fair and reasonable, and we will be able to provide a report later. I’m not familiar with the article which the hon. member is referencing. If there’s something there that I should review, I’d be very happy to receive a copy of it and look at it.
Ms Blakeman: I’m sure your staff has it.
To the same minister: does this mean that the Alberta government has approved that the insurance industry raise rates to guarantee them a 7 per cent and then a 9 per cent profit increase when the cost of living is around 5 per cent and most Albertans aren’t seeing any increase in their wages?
Ms Evans: Well, Mr. Speaker, the hon. member is putting questions before we’ve even had a determination from the Auto Insurance Rate Board whether or not there are needs attached to this. In terms of profits, that’s not anything that we deal with. The profits of insurance companies are not something that I am personally looking into. What we look at is what the cost of insurance is, what is fair and reasonable for an automobile insurance rate. I’m sure we’ll hear about those forthwith. The hearings are very transparent. Board members indulge in those hearings, and we can make those available to members of the public who wish to know.
The Speaker: The hon. member.
Ms Blakeman: Well, thank you. Again to the same minister: in all of this talk – the minister, the insurance industry, the rate board – who is standing up for plain old Albertans in all of these discussions?
Ms Evans: Well, I’m sure plain old Albertans aren’t shy about standing up for themselves, and I know that they will be speaking out relative to those reports.
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