Insurance Levy
Increased Numbers and Severity of Real Estate Claims Impact Insurance Levy
For each lawyer, the 2011/2012 insurance levy has been set at $3,124 plus GST.
Increased number of claims and the severity of real estate claims are among factors impacting the 2011/2012 insurance levy.
The Alberta Lawyers Insurance Association experienced the following:
- An increase in the number of claims, particularly real estate claims. Considering the 2008 economic crisis, we expected an increase in the number of claims.
- Some recovery on investments but not to the point where the levy can be subsidized as much as in previous years. (In past years, the levy has been subsidized by return of investment returns earned on the ALIA surplus.)
Most of the levy amount consists of an actuarial calculation of the funds necessary to cover potential future claims. ALIA anticipates claims costs which mean higher levies for the next two to three years.