Minimizing litigation in Care-First system critical to delivering improved affordability and care to drivers

EDMONTON, AB, March 24, 2025 /CNW/ - Today, 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. Following the announcement, Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC), issued the following statement:

"We congratulate the Alberta government for taking continued action to deliver an auto insurance system that puts Albertans back in the driver's seat. 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.

"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.

"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."

About Insurance Bureau of Canada

Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up the vast majority of Canada's highly competitive property and casualty (P&C) insurance market.

As the leading advocate for Canada's private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow. 

IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses.

For media releases, IN Focus articles, or to book an interview with an IBC representative, visit ibc.ca. Follow us on LinkedIn, X and Instagram, and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC. We're here to help.

SOURCE Insurance Bureau of Canada