Premiums and Penalties: Alberta insurers fined for overcharging, says Superintendent report

Twenty-one insurers have been fined a combined total of three million dollars for regulatory violations. Violations include overcharging customers, compensation of unauthorized insurance agents and unfair acts or practices when handling insurance claims.

Alta

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Edmonton, Ontario — The Alberta government’s Superintendent of Insurance has reportedly fined several insurance companies operating in the province for overcharging customers.

From 2022 to 2024, Alberta’s Superintendent of Insurance conducted an industry-wide examination of auto insurance premium overcharges. A document from the Superintendent notes that it had also issued a document providing best practices for insurer operations, controls and governance with respect to automotive insurance rating. Twenty-one insurers, listed alphabetically on page two of this document, cumulating a total of $3 million for regulatory violations.

The document also lists all Superintendent of Insurance Enforcement activities dating back to 2005.

The Superintendent’s report suggests customers experienced insurance premium overcharges as a result of surcharges, errors and failures to apply proper discounts. Other 2024 instances to note include compensation of unauthorized insurance agents and unfair acts or practices when handling insurance claims.

Albertan insurers have been fined more than $6 million since 2016. With the province’s insurance system in flux, concerns remain that regulatory violations could get worse under a no-fault insurance system.

“Why would they act differently when they are handed unchecked power?” said Jackie Halpern with FAIR Alberta, a coalition powered by the Alberta Civil Trial Lawyers Association opposing the move to a no-fault insurance system.

“Insurers being caught and fined for overcharging Albertans should set off alarm bells for everyone.”

For more information, or to read the full report, click here.

 


 

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