The Insurance Bureau of Canada has identified three priorities for the year: the implementation of auto insurance reforms in Alberta and Ontario, mounting exposure to catastrophic earthquake risk, and the rising cost of regulatory compliance.
That's as Canadian insurers enter 2026 facing persistent economic uncertainty and volatile financial markets, as well as policy and structural pressures that could shape pricing, capacity and consumer outcomes in the years ahead.
Auto reform: delivering value to drivers in Alberta and Ontario
For IBC, the immediate operational test in 2026 is auto insurance reform in two of the country’s largest markets: Alberta and Ontario. In both provinces, governments have redesigned auto products through legislation, and IBC said its focus is now on implementation – making sure the new systems deliver better care and value while keeping premiums as affordable as possible.
In Alberta, the province is moving to the new Care-First system effective Jan. 1, 2027. The model is intended to deliver faster, better care to people injured in collisions, provide what is expected to be the most generous accident benefits in Canada, and ensure that claims dollars go primarily to treatment and recovery rather than being diverted to fund lengthy and costly court battles.
IBC described the reforms as a major win for Alberta drivers, but stressed that there is considerable pressure to get the transition right. Key regulatory details are still being finalized, and the industry faces a year of intensive preparation, including system upgrades, staff training, catastrophic claim management planning and consumer education.
In Ontario, reforms effective July 1 will give drivers more choice over their coverage. Benefits such as income replacement, non-earner benefits and caregiver benefits will become optional, reflecting the fact that many consumers already have these protections through workplace plans or other coverage. The intent is to allow drivers to purchase only the auto benefits they need.
To support implementation, IBC and the Insurance Brokers Association of Ontario will launch a consumer education campaign this spring to help Ontarians understand their options and select the coverage that best fits their circumstances.
Addressing an existential threat: earthquake risk
IBC is also putting national earthquake resilience at the center of its 2026 advocacy. A major earthquake in British Columbia or Quebec would, in its view, represent the single biggest threat to Canada’s economic resilience, with impacts that would cascade far beyond the immediate epicenter. In addition to the destruction of homes, businesses, infrastructure and essential services, a large event could shut down ports, rail lines and supply chains, displace thousands of people, and trigger significant, long-lasting economic and financial disruption across the country.
IBC argued that Canada is not yet ready for this level of loss and that preparedness is a national imperative. In the 2025 federal budget, the government committed to begin consultations aimed at ensuring the stability of Canada’s insurance sector in the event of an extreme earthquake.
Ottawa has also announced an earthquake early warning system in Montreal and Ottawa, underscoring the real prospect of a significant event and the need for readiness. IBC views 2026 as a pivotal window to work with the federal government on a national solution that protects Canadians and shields the economy from the worst impacts of a catastrophic quake.
Reducing red tape to support economic growth
The third pillar of IBC’s agenda is regulatory efficiency. According to IBC’s new Regulatory Compliance Cost Survey, regulatory compliance costs across Canada’s P&C insurance sector increased by 81% between 2022 and 2024.
The bureau argued that this sharp rise is not only a problem for insurers but ultimately for consumers and the broader economy, given the link between regulatory burden and economic performance. Citing Statistics Canada data, IBC noted that increasing regulation on Canadian businesses has a measurable drag on economic output.
Against that backdrop, the industry is encouraged by signs that governments are open to streamlining processes without compromising consumer protection.
IBC said it will continue working with federal officials and regulators to provide recommendations that support both consumer protection and Canada’s economic growth and innovation agenda.
