The Ontario Broker - Volume 23, Issue 3 - 17

Jhnel Weller-Hannaway, CEO
Insurance Brokers Association of Alberta (IBAA)
Unique Challenges
Provincial Roundup
Auto insurance continues to be one of the biggest challenges within Alberta's insurance
industry. The increasing costs of claims places a lot of pressure on insurance providers, which
then has an adverse effect on consumers and the costs of premiums. Compared to other
provinces, there's less flexibility with the available product offerings carriers provide, which
limits consumer choice. The IBAA has and will continue to actively advocate for consumer
choice and increased product flexibility at the governmental level.
Another unique and significant challenge is insurance coverage for commercial trucking.
Obtaining reasonable and affordable coverage as a new truck driver within our province
is extremely difficult. One of the main driving forces behind this unavailability is the
Mandatory Entry Level Training (MELT) program, which prepares new drivers to operate
safely on Alberta's roadways. Unlike similar programs in other provinces, the MELT training
program is inadequate, less comprehensive and more costly.
Our province also routinely deals with catastrophic losses whether in the form of fire, hail
and floods. Although hail occurs across Canada, its frequency and the high costs of damage
are unique to Alberta. The challenge insurance carriers face is getting the cost of reinsurance
down as the frequency of claims puts pressure on the industry.
Fun Fact: John Carter Callaghan of
the University of Alberta performed
Canada's first open heart surgery in
1956.
Pending Regulatory Changes
A rate " pause " has been in effect since January 2023 that's set to expire at the end of the
current year. Historically, rate freezes or rate caps aren't long-term solutions and usually
have an adverse effect on consumers with many still experiencing rate increases due to
limited coverage availability. The IBAA will always be a strong advocate for both legislative
and regulatory consumer-focused auto reform because only then will we see lasting changes
in the auto industry. We remain committed to working on and with all stakeholders to find
sustainable solutions through collaborative effort.
Underrated Landmark: Red Rock
Canyon, located in Waterton Lakes
National Park in Waterton Park.
Licensing
A unique feature of our auto insurance industry that out-of-province brokers will need
to know about before getting licensed is Alberta's grid rating program. The program
was developed to establish the maximum premium rate insurers can charge for basic
mandatory auto insurance coverage. Mandatory auto insurance includes coverage for
direct compensation property damage (DCPD), third-party liability, both bodily injury and
property damage tort, and accident benefits. The individual's insurance company sets the
DCPD rates while the Automobile Insurance Rate Board (AIRB) sets third-party liability and
accident benefits rates. Existing brokers wanting to get licensed in Alberta should contact the
Alberta Insurance Council where you're required to obtain a certificate of authority for the
class of license you wish to transact. For additional guidance on the options available, visit
IBAA's website or contact our education department directly at education@ibaa.ca.
Pop Culture: The TV series " The Last
of Us " was filmed in Alberta-original
release date January 2023.
Volume 23 | Issue 3
17

The Ontario Broker - Volume 23, Issue 3

Table of Contents for the Digital Edition of The Ontario Broker - Volume 23, Issue 3