Insurance companies in Alberta set to rake in almost $1 Billion in pre-tax profit over 2019 and 2020

Multinational insurance companies are lobbying for major concessions from the Alberta government that would bolster their profits but a new analysis shows that insurers are already expected to experience a pre-tax profit of almost $1 billion in 2019-2020.

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Just as Alberta insurance companies are looking to receive major concessions from the Alberta government that would bolster their profits, a new analysis shows that auto insurers in the province are expected to experience a pre-tax profit of almost $1 billion from 2019 to 2020.

The $953 million expected pre-tax profit is a result of the following factors:

The following breaks down the anticipated windfall for insurers:

Concern about profits is central to insurance company requests for insurance reform & rate hikes facing Albertans

Insurance companies have repeatedly claimed to the Alberta government that they are losing money and that provincial officials must make changes affecting the rights of Albertans if premiums are to stop escalating. Despite these claims that they’re losing money, this analysis, along with filings with the Alberta government show that Alberta’s insurers will be making hundreds of millions of dollars through 2019 and 2020.

It appears insurance industry lobbyists, having found that no-fault auto insurance is unpopular with Albertans, now want to change the legal definition of “minor injuries” to include chronic conditions like concussions or traumatic brain injuries as a means to shortchange Albertans and increase their profits.

These changes to Alberta’s insurance regulations are unfair to consumers, would cut out unbiased courts from settling insurance disputes, and would result in injured patients carrying more of the financial burden to support their recovery.

Essentially, insurance industry lobbyists want to regulate our rights away for their profit by getting the government to let them off the hook of compensating Albertans who get injured in an accident. The big problem is the Alberta government appears to be listening and time is running out to encourage the government to change course and put the rights of Albertans first ahead of corporate profits.

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