This release was issued under a previous government.

Bill 39, the Enhancing Consumer Protection in Auto Insurance Act, will allow for both mandatory and optional auto insurance premiums to be regulated.

“Albertans have told us they want increased oversight in their auto insurance rates and we’ve listened. These reforms will set insurance rates that are fair for Albertans and make our already strong auto insurance system even better.”

- Doug Horner, President of Treasury Board and Minister of Finance

Other changes will be made to the auto insurance system to ensure Albertans continue to receive timely, efficient and appropriate access to health care services after a collision. These changes will be detailed in future updates to the Diagnostic and Treatment Protocols Regulation.

“We support government’s commitment to a stable auto insurance system for Alberta drivers. Bill 39 modernizes the insurance rate filing system, creates a more competitive marketplace and enhances consumer protection."

- Bill Adams, Vice President, Western & Pacific for Insurance Bureau of Canada

“Our committee is very pleased to see the government making changes based on our recommendations for improvements to the system. The changes we’ve proposed will allow medical professionals to spend less time on bureaucracy and more time tending to the needs of Albertans injured in collisions.”

- Dr. Larry Ohlhauser, Senior Medical Advisor to the Superintendent of Insurance and Co-Chair of the clinical review working group

Key amendments in Bill 39 include:

  • Both mandatory and optional insurance coverage will be regulated by the independent Automobile Insurance Rate Board.
  • Competition in the auto insurance industry will be increased by moving to a file-and-approve system where each insurer will need to apply for premium adjustments on an as-needed basis instead of an annual, industry-wide rate adjustment.
  • Additional changes to the Insurance Act will strengthen solvency requirements for insurance companies and improve general market conduct.

Mandatory auto insurance rates are regulated by the Automobile Insurance Rate Board. Since the creation of the board in 2004, mandatory premiums have decreased by 13 per cent. Changes are not being proposed for other components of Alberta’s automobile insurance system, such as the definition of minor injury and the related cap on payouts for minor injuries. Those components remain under review.

Under the Building Alberta Plan, our government is investing in families and communities, living within our means, and opening new markets for Alberta's resources to ensure we're able to fund the services Albertans told us matter most to them. We will continue to deliver the responsible change Albertans voted for.

Related information

Automobile Insurance Rate Board