ALBERTA AUTO RATES TO DECREASE BY 5% IN NOVEMBER 2009

Canadian Underwriter, Sep 2009

Basic auto insurance rates in Alberta will decrease by 5%, according to the province's Automobile Insurance Rate Board (AIRB).

The rate reduction follows public hearings in which the Insurance Bureau of Canada called for a 6.4% rate increase.

According to the AIRB, the decrease is mainly a reflection of the Alberta Court of Appeal's decision to uphold the province's Minor Injury Regulation, which restores the cap on the amount an individual can claim for minor soft-tissue injuries.

Expected claims and administrative costs, in addition to declining investment rates and increasing claims costs for insurers, were taken into account when proposing the rate decrease, the AIRB notes in a release.

The decrease will take effect Nov. 1, 2009.