Insurance companies profiting after rate cap removed, says NDP

By Alejandra Pulido-Guzman - Lethbridge Herald on April 16, 2022.

LETHBRIDGE HERALDapulido@lethbridgeherald.com

NDP Energy Critic. Kathleen Ganley called out the UCP for refusing to extend the expiring utility shut-off ban and revealed data that shows insurance companies gaining profits from struggling Albertans.
During a media availability Friday Morning, Ganley talked about insurance corporations patting their profits by charging Alberta drivers hundreds of millions of dollars in additional premiums after the UCP remove the NDP era rate cap.
“Many of Albertans were getting in their cars to leave town for the long weekend and the UCP quietly dropped a report that shows why the insurance on those cars has gotten so much more expensive,” said Ganley.
Insurance companies have been generating massive profits off of Alberta drivers, says Ganley.
“In 2020 the car insurance industry charged Alberta drivers $385 million more in premiums than they did in 2019… they were able to do this because the UCP removed the cap we put in place to limit increases to premiums,” said Ganley.
She said it was no surprise why the UCP tried to hide the report before.
“Many Albertans parked their cars and barely drove in 2020, but they still watched their bills get bigger thanks to the UCP,” said Ganley.
She said the UCP also removed the cap the NDP put on electricity rates and those bills have soared right alongside car insurance.
“They promised a $50 rebate which is inadequate, but more than a month later they still haven’t delivered on it. This situation has left some Alberta families thousands of dollars behind on their utility bills and some are facing disconnection,” said Ganley.
She said there is a legislated ban on utility disconnections throughout the winter months, but that ban expired Friday.
 “I brought a bill to the legislature that would have extended the protection from disconnection through this time next year, but the UCP wouldn’t even debate it.”

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