Corporate Governance

Governance defines the roles, relationships, powers and accountability between the Government, the Board and Management.

Relationship to Government

The Minister of Finance and the Government of Alberta, through legislation (Insurance Act), established the Alberta Automobile Insurance Rate Board (AIRB or the Board) in October, 2004 as an independent, quasi-judicial regulator. In this capacity, the AIRB is responsible for regulating automobile insurance premiums in Alberta. The Board, through its functions and statutory duties and responsibilities, serves all Albertans - the public, industry and Government. In addition, the Board must exercise and perform any other powers and duties assigned to it by the Minister or prescribed by the regulations.

Board decisions regarding applications, premium levels and other related areas are made independently of Government and pursuant to the AIRB's enabling legislation.

As part of Government's "Tools for Accountability" the AIRB is required to submit this Annual Report along with its Business Plan to the Minister on an annual basis.

Board Governance

The Board approves the corporate vision, mission, values, strategic priorities and goals that guide the AIRB. The Board sets goals for performance as part of the business planning process and these goals are the basis upon which accountability and performance is evaluated.

The AIRB's membership consists of 7 members appointed by the Lieutenant Governor in Council, a consumer representative appointed by the Minister, and the Superintendent of Insurance who is a non-voting member of the Board. In total the AIRB Board consists of 9 members with a broad range of expertise and experience. A Board member's term of office must not exceed 3 years; however, a Board member may be reappointed for 2 additional terms. Limits on reappointment do not apply to the Chair and the Consumer Representative.

The Insurance Act provides for a chair and a vice-chair as appointed by the Lieutenant Governor in Council. The Board holds regular monthly meetings to deal with administrative issues of the Board and otherwise exercise its mandate. In addition, it holds public meetings for the annual industry-wide adjustment process.

The Board's governance processes and guidelines outlining how the Board will carry out its duties are in keeping with the Public Agencies Governance Framework.

Charter of Expectations

The Board has adopted the following guiding principles which provide an understanding of the roles, expectations and responsibilities of each Board member.

  • Assume with other Board members the stewardship role of supervising the management and business affairs of the AIRB.
  • Act in the highest ethical manner and with integrity in all personal, business and professional dealings.
  • Become knowledgeable about the AIRB's business, the environment in which it operates and the emerging trends and issues in the automobile insurance industry
  • Commit enough time and sufficient attention to the work of the AIRB as may be required from time to time.
  • Act in a way that contributes to the effective operation of the Board.

Skills Matrix

The Board has also set out a skills matrix to identify the set of skills and experience that is required within the group to effectively carry out the Board's mandate.

Specialty Skills (one or more individuals bring these skills to the Board):

  • Governance
  • Insurance industry expertise
  • Financial expertise
  • Legal expertise
  • Actuarial expertise
  • Consumer relations
  • Risk management