Alberta
Auto Insurance affordability: Province says long term solutions may include public insurance offering
Good drivers to benefit from auto insurance changes
New reforms will address the pressing issue of automobile insurance rates in the province as the government explores longer-term solutions.
Alberta’s government is exploring every possible avenue to provide relief to Albertans. Albertans with good driving records would experience price protection, ensuring their insurance rates do not increase higher than inflation. The proposed reforms would start Jan. 1, 2024.
“We know that Albertans have been struggling with their auto insurance rates and that’s why we’ve been working hard to find solutions. I’m pleased that we can work to bring forward these new measures to help. With inflation and the affordability crisis making life more expensive for Albertans, we will continue working to ensure that the measures we take are not only affordable but also sustainable in the long run.”
Alberta’s government will be taking further action to amend regulations, ensuring that insurers must offer payment plan options so Albertans would not have to pay the full amount for their coverage upfront. These changes would ensure the auto insurance industry can continue to cover claims costs and protect Alberta drivers while providing more relief to Albertans.
Additionally, changes would grant Alberta’s Automobile Insurance Rate Board (AIRB) the authority to direct auto insurers to return premiums to Albertans in years when insurance industry profits are significantly higher. AIRB could also request a rate filing from an insurer at any time to review and possibly lower auto insurance rates if needed.
“We understand the struggles many Albertans are facing, and we are working to ensure Albertans can afford the coverage they need. Achieving affordable auto insurance is a major commitment for our government and this is only the first step in delivering on that promise. We value the sustainability of the insurance industry and call for increased collaboration from insurers as we continue the work to address these issues.”
“Affordability continues to be a major concern for Albertans when the cost on every day essentials rises and makes it tough to make ends meet. That’s why we continue to build on our existing affordability measures to help stabilize costs. This auto insurance reform will help do this in the short term.”
Alberta’s government is closely examining more long-term solutions to make Alberta’s auto insurance industry affordable and sustainable.
The current rate pause will remain in effect to ease the burden on Alberta drivers until the end of 2023. Proposed reforms for 2024 would not impose a dynamic price ceiling on the rate increases insurers can request but would help control how they are distributed among customers, particularly those with good driving records. Any rate increases in 2024 will be carefully monitored to ensure they are reasonable and justifiable. Albertans should continue to shop around to find the best insurance coverage for them.
“As the consumer representative on the Automobile Insurance Rate Board, I ensure that Alberta drivers are considered in all board decisions, including changes to insurer rating programs. I believe protecting good drivers from unexpected rate increases is a win for Alberta consumers. During a time of affordability challenges, this action will provide price stability and predictability for Alberta families.”
The government has commissioned an in-depth analysis by an external consultant concerning longer-term reforms. A draft report is expected by the end of 2023, with the final report slated for the first quarter of 2024. The results of this analysis will inform the government’s long-term reforms.
Quick facts
- The description of a driver with a good record is adapted from the AIRBs guidance for the grid rating program. This includes anyone without the following:
- one or more at-fault accidents in the last six years
- any Criminal Code traffic convictions in the last four years
- any major traffic convictions in the last three years
- more than one minor traffic conviction in the last three years
- In Alberta’s competitive marketplace, Albertans can sometimes get better rates by shopping around and exploring their options.
- Albertans should continue to work with their insurance companies or brokers to get the best rates.
- Alberta drivers can get discounts of up to 20 per cent for bundling their home and property insurance, in addition to discounts for good driving behavior.
Related information
At 17:00 of the video here, A reporter’s question about a potential public insurance offering in Alberta is confirmed.
Alberta
Fortis et Liber: Alberta’s Future in the Canadian Federation
From the C2C Journal
By Barry Cooper, professor of political science, University of Calgary
Canada’s western lands, wrote one prominent academic, became provinces “in the Roman sense” – acquired possessions that, once vanquished, were there to be exploited. Laurentian Canada regarded the hinterlands as existing primarily to serve the interests of the heartland. And the current holders of office in Ottawa often behave as if the Constitution’s federal-provincial distribution of powers is at best advisory, if it needs to be acknowledged at all. Reviewing this history, Barry Cooper places Alberta’s widely criticized Sovereignty Act in the context of the Prairie provinces’ long struggle for due constitutional recognition and the political equality of their citizens. Canada is a federation, notes Cooper. Provinces do have rights. Constitutions do mean something. And when they are no longer working, they can be changed.
Alberta
30 million contraband cigarettes valued at $25 million dollars seized in Alberta
New release from Alberta Gaming Liquor and Cannabis (AGLC)
Record setting contraband tobacco seizures result from AGLC investigations
Alberta Gaming Liquor and Cannabis (AGLC) recently concluded several investigations which netted two of the largest contraband tobacco seizures in Alberta history. The combined total of the contraband tobacco seized was 154,800 cartons of contraband cigarettes (30.7 million individual cigarettes). These seizures are a result of the work conducted by AGLC’s Tobacco Enforcement Unit with the assistance of provincial law enforcement agencies.
- In a January 2024 investigation, approximately 43,500 cartons (8.7 million individual cigarettes) were seized. This equates to $7 million in retail value with a provincial tax avoidance of $2.4 million. This included the seizure of 15,000 grams of contraband shisha.
- In April of 2024, 60 wrapped pallets were seized from a warehouse setting netting a total of 111,300 cartons of contraband cigarettes (22 million individual cigarettes) which equates to over $18 million in retail value with a provincial tax avoidance of $6.6 million.
- Criminal Charges are pending in both cases.
“These are significant contraband tobacco investigations involving individuals that are part of organized networks whose proceeds defraud Albertans millions of dollars in tax revenue. AGLC will continue to work with our partners to investigate and disrupt the individuals and organizations involved in these illegal activities as part our commitment to a strong contraband tobacco enforcement program in Alberta.”
- Gary Peck, Vice President, Regulatory Services, AGLC
“Contraband tobacco hurts law abiding businesses that follow the rules, and it costs Albertans millions each year from lost tax revenue. Our government is committed to keeping illegal tobacco off the streets and ensuring that the sale of tobacco products comply with the law.”
- Dale Nally, Minister of Service Alberta and Red Tape Reduction
Over the last nine months, AGLC’s Tobacco Enforcement unit has seized an estimated 35 million contraband cigarettes and 115,000 grams of contraband shisha from across the province. The total potential lost tax revenue is estimated to be more than $10.1 million.
Contraband tobacco:
- is any tobacco product that does not comply with federal and provincial laws related to importation, marking, manufacturing, stamping and payment of duties and taxes;
- comes from four main sources: illegal manufacturers, counterfeits, tax-exempt diversions and resale of stolen legal tobacco; and
- can be recognized by the absence of a red (Alberta) or peach/light tan (Canada) stamp bearing the “DUTY PAID CANADA DROIT ACQUITTÉ” on packages of cigarettes and cigars or pouches of tobacco.
In addition to lost revenues that may otherwise benefit Albertans, illegally manufactured products also pose public health and safety risks as they lack regulatory controls and inspections oversight.
Albertans who suspect illegal tobacco production, packaging and/or trafficking are encouraged to contact AGLC’s Tobacco Enforcement Unit at 1-800-577-2522 or Crime Stoppers at 1-800-222-TIPS (8477).
Under a Memorandum of Understanding with Alberta Treasury Board and Finance, AGLC enforces the Tobacco Tax Act and conducts criminal investigations related to the possession, distribution and trafficking of contraband tobacco products. In 2022-23, provincial revenue from tobacco taxes was approximately $522 million.
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