The Alberta government introduced legislation that, if passed, will underpin the largest transformation of the auto insurance system in provincial history, and improve and expand access to care for drivers who suffer injuries after a collision, according to Insurance Bureau of Canada.
We congratulate the Alberta government for taking continued action to deliver an auto insurance system that puts Albertans back in the driver’s seat.
Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC)
Alberta’s insurers look forward to working with the provincial government to ensure these reforms enhance the care provided to those injured in collisions While ensuring premium affordability over the long term (see Canada Insurance Market Rates Declines Across Property, Casualty, Cyber Lines).
Care-based auto insurance systems work by replacing costly legal battles with more efficient access to benefits and improved premiums, and the success of these reforms will be determined by the extent of litigation that the government permits.
The more lawyers are involved in Alberta’s Care-First system, the less likely that drivers will save. Other provinces and international jurisdictions have recognized this, and it is imperative that Alberta follow suit.
Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC)
This legislation provides a framework for an improved auto insurance system in 2027, but further action is needed to fix the challenges in the system today.
For three years, the government has suppressed auto insurance rates below the cost of providing coverage.
This has forced several insurers to leave the province, and has caused frustration for drivers, who now have fewer companies to choose from and increasingly face challenges securing full coverage.
While these reforms are a good step forward, today’s announcement alone will not bring insurers back to Alberta.
To do that, the province must end its rate intervention, cut red tape and let the competitive market create the conditions for lasting affordability.
