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Alberta law proposes more regulation for the insurance industry

EDMONTON – The Alberta government has brought forward a law that proposes further regulation to how car insurance rates are set.

Under the Enhancing Consumer Protection in Auto Insurance Act, both mandatory liability and optional collision rate hikes would be subject to review by the Automobile Insurance Rate Board.

Currently, only the mandatory rate hikes are subject to approval.

Insurance companies would also have to apply for rate hikes individually when wanted, rather than annually through an industry group.

Alberta Finance Minister Doug Horner says driver have been calling for more oversight of the insurance industry.

The government says areas of the system that deal with the definition of minor injury and the cap on payouts for minor injuries are still under review.