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Alberta

Auto Insurance affordability: Province says long term solutions may include public insurance offering

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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.”

Danielle Smith, Premier

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.”

Nate Horner, President of Treasury Board and Minister of Finance

“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.”

Nathan Neudorf, Minister of Affordability and Utilities

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.”

Stephane Lemieux, consumer representative, Alberta Automobile Insurance Rate Board

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.

This is a news release from the Government of Alberta.

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Alberta

Alberta’s methane emissions fall 52 per cent

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Alberta has cut its methane emissions from the oil and gas sector in half, showing how to reduce emissions and keep powering the world.

As global demand for energy continues to rise, Alberta remains one of the most responsible producers in the world. The province was the first in Canada to set a methane emissions reduction target for the upstream oil and gas sector, and its approach has won international awards and recognition.

This is the message Alberta’s government will take to COP 29. The Alberta approach is working. It is possible to reduce methane emissions and grow the economy, all while delivering the safe, affordable, reliable energy the world will need for generations to come.

According to the latest data from the Alberta Energy Regulator, Alberta has now officially reduced methane emissions from the oil and gas sector by 52 per cent since 2014, even as production has continued rising. The province’s common-sense approach is reducing emissions, creating jobs and growing the economy without punitive federal regulations or caps.

“We do not need Ottawa to tell us how to reduce emissions. In fact, the federal government should learn from Alberta’s success. By working closely with industry and focusing on technology, not costly taxes or unrealistic targets, we can achieve rapid emission reductions while delivering the safe, affordable, reliable energy the world needs.”

Rebecca Schulz, Minister of Environment and Protected Areas

Under Alberta’s equivalency agreement with the Government of Canada, the province is in charge of regulating methane emissions. Alberta’s approach is working closely with industry and focusing on achievable results, including early action programs like carbon offsets, implementation of strong provincial regulatory requirements in place for all facilities, and improved leak detection and repair. This is estimated to have saved industry about $600 million compared with the alternative federal regulations that would otherwise have been required.

Since 2020, Alberta has invested $78 million from the industry-funded Technology Innovation and Emissions Reduction program to improve methane monitoring and management. Almost 15,000 well sites and facilities have been reviewed across the province, preventing nearly 17 million tonnes of emissions from being released.

Continuing this momentum, the province recently announced $15 million in funding for the NGIF Emissions Testing Centre to help companies test technologies free of charge in both laboratory and live settings, attract investors and get methane emissions reduction technologies to market faster. Alberta is also engaging with industry to develop a flexible, forward-looking path that will keep reducing emissions while supporting responsible energy production.

“Tourmaline, like other producers in Western Canada, has been diligently reducing methane emission intensity across our field operations, and we are targeting a 55 per cent reduction from 2020 levels by 2027. We operate a world-leading methane emissions testing centre (ETC) at our West Wolf Lake gas plant near Edson, Alberta. At the ETC site, the latest technologies to better measure and mitigate future methane emissions are being developed.”

Michael Rose, chairman, president and CEO, Tourmaline

Minister of Environment and Protected Areas Rebecca Schulz will travel to the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 29) from Nov. 10 to 16 to share Alberta’s success with the world. Alberta’s environment minister will use the largest global climate summit to promote the province’s effective approach to reducing emissions while keeping energy reliable, secure and affordable.

Alberta’s government is committed to working with national and international partners to advance shared interests that can lead to new opportunities for people and businesses around the world.

Minister Schulz will attend COP29 with one staff member and three department officials. Mission expenses will be posted on the travel and expense disclosure page.

Itinerary for Minister Schulz*

Nov. 10-11
  • Travel to Baku, Azerbaijan
Nov. 12
  • Attend Alberta delegation briefings and meetings on COP29
Nov. 13
  • Participate in panel on Alberta’s Methane Emissions Reduction success and other events
Nov. 14
  • Participate in panel on Alberta’s Industrial Carbon Pricing Leadership and other events
Nov. 15
  • Participate in panels on Canada’s Global Role in Carbon Removal, Securing a Reliable Energy Future and other events
Nov. 16
  • Return to Calgary

*Subject to change.

Quick facts

  • The Alberta Energy Regulator monitors, compiles and reports methane emissions data by facility type, production type and area. It releases the ST60B report annually to ensure the public and stakeholders have the latest information about methane emissions from Alberta’s upstream oil and gas sector.
  • Alberta carbon offset protocols resulted in more than 58,000 low- or no-bleed devices being installed, and more than 7 million offset credits have been serialized.
  • Alberta uses a combination of bottom-up and top-down measurement, monitoring and verification techniques as part of methane measurement compliance data.

Related information

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Alberta

39 percent increase in funding for RCMP instigates discussion about future policing for rural Alberta

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Alberta’s government will pay the 39% increase for one year and will begin engagement with smaller communities on their policing needs for the future.

Alberta’s government is temporarily freezing the amount rural municipalities are responsible for paying for front-line policing services in Alberta.

The province is responsible for providing policing services to municipal districts, counties and urban municipalities with populations less than 5,000. In response to rising rural crime, Alberta’s government announced increased funding for RCMP services in 2019 which helped create hundreds of additional RCMP positions across the province.

When these changes came into effect in 2020, the province also worked with Alberta Municipalities and Rural Municipalities of Alberta to create a shared funding model through the Police Funding Regulation. Now, due to higher costs from recent RCMP collective agreements, the cost for policing in these smaller communities will increase by 39 per cent, with no corresponding increase in the services provided. To assist municipalities with these new costs, Alberta’s government will pay the increase for one year and will begin engagement with them on their policing needs for the future.

“The expiring regulation would have municipalities seeing a 39 per cent increase in their costs – with no improvement in policing services delivered. We know this is not acceptable for many municipalities. This cost freeze will give rural municipalities the stability and predictability they need, and it will allow for meaningful engagement between the province and municipalities on equitable support.”

Mike Ellis, Minister of Public Safety and Emergency Services

“Alberta’s government understands that such an increase in costs for service will be a challenge to our rural municipalities. With the costs frozen for a year, we look forward to a comprehensive review of the police funding model with our municipal partners. During our review, we will carefully consider all factors to ensure we provide an updated funding model that is sustainable.”

Ric McIver, Minister of Municipal Affairs

Municipalities are preparing their budgets for 2025, and those served by the RCMP under the Provincial Police Service Agreement can continue to expect the same level of service without the additional costs for one year. While these costs are shared between municipalities and the province, the province will pay a higher proportion of the costs next fiscal year, a total of $27 million, so that municipalities’ costs remain stable while they determine how to cover the increases on a forward basis and what the best model of policing is for their community.

The Police Funding Regulation introduced in 2020 was phased in over several years, with rural municipalities paying an increasing share of their policing costs each year for four years. Municipalities have been paying 30 per cent of front-line policing costs since fiscal year 2023-24. By sharing costs, the province has been able to afford the addition of many new RCMP police officers, programs and services over the past several years.

The Police Funding Regulation has been in place for almost five years, and with the significant cost increases coming from the federal government, the province will undertake a review to determine what improvements may be needed. While the regulation was originally supposed to expire March 31, 2025, Alberta’s government has extended it by one year to March 31, 2026, which will enable the province and municipalities to have fulsome conversations about future policing needs and models. More details about the comprehensive review and engagement opportunities for rural municipalities will be released shortly.

Quick Facts:

  • The Police Funding Regulation brought in a new funding model, which was phased in over several years, with rural municipalities paying an increasing share of their policing costs each year, reaching the intended 30 per cent in 2023.
    • They were charged 10 per cent starting April 1, 2020. This increased to 15 per cent one year later, 20 per cent the following year and finally 30 per cent starting April 1, 2023.
    • The initial funding model was based on 2018 costs to provide certainty and stability to municipalities.
    • After 2024-25, the municipal share will be required to be based on current policing costs, resulting in a proposed 39 per cent increase in costs for municipalities.
  • The Police Funding Model enabled a $235.4-million investment in policing over five years, adding 285 regular members and 244 civilian positions to enhance rural policing.
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