The Insurance Bureau of Canada (IBC) has called on Alberta’s government to act swiftly to finalize Bill 47, the Automobile Insurance Act, and ensure the new model is in place by January 2027.
Bill 47 introduces the Care-First model and focuses on improving care and benefits for injured drivers while seeking to control costs and reduce legal disputes. The legislation aims to transform Alberta’s auto insurance system.
Aaron Sutherland, vice-president for Pacific and Western at the IBC, described Bill 47 as “the most significant overhaul in Alberta’s auto insurance history” but stressed the importance of balancing benefits for injured parties with efforts to reduce litigation. He noted that higher involvement of lawyers in the system leads to increased costs and fewer savings for drivers.
Sutherland also pointed to ongoing challenges under the current framework, highlighting that insurers have paid $1.17 in claims and expenses for every dollar in premiums over the past three years.
He called this level unsustainable and criticised government-imposed rate caps for reducing market competition, prompting some insurers to leave the Alberta market, and complicating drivers’ access to coverage.
Looking ahead, Sutherland urged the government to encourage insurers to return by allowing rate-setting based on market conditions rather than regulatory caps. He also called for cutting regulatory red tape and fostering a competitive environment to promote lasting affordability in auto insurance.
Sutherland added that Alberta’s insurers remain engaged and willing to provide ideas and support to improve care and affordability for drivers as the province transitions to the new Care-First model.
