Will Alberta still see auto insurance reform?

Last weekend’s United Conservative Party of Alberta (UCP) annual general meeting heard a resolution to repeal the province’s upcoming auto insurance reform, set to take effect Jan. 1, 2027.

The policy resolution was presented at UCP’s annual general meeting in Edmonton at the end of November, receiving about 75% support on the convention floor. It proposes repealing the upcoming care-first legislation and returning to ‘at-fault’ based insurance.

“Repealing the no-fault insurance legislation in Alberta and returning to a tort-based system aligns with conservative values by promoting personal responsibility and accountability, ensuring fair compensation based on fault and reducing fraudulent claims,” the resolution reads. “This approach encourages safer driving behaviours and ensures that only legitimate claims are compensated.”

But “Alberta drivers should be quite concerned” by the call to reverse care-first reforms, says Aaron Sutherland, vice president of Insurance Bureau of Canada’s (IBC) Pacific and Western regions.

“Care-first is going to dramatically improve the quality of the auto insurance product that you’re buying in Alberta,” he tells Canadian Underwriter in a Tuesday interview. “It’s going to be more; faster benefits to make sure you’re getting what you need to recover when you need it.

“It’s also looking increasingly likely that it’s going to improve the affordability of auto insurance in Alberta, so better care and better rates…”

The Alberta Civil Trial Lawyers Association (ACTLA) says in a press release Monday it supports the resolution. The right to seek justice through the courts is a fundamental civil right that needs to be protected, the association argues.

“We call on Premier [Danielle] Smith to intervene personally and direct officials to drop the no-fault approach immediately,” ACTLA says.

“It is telling for a governing party to see a flagship policy so resoundingly repudiated by its own membership,” ACTLA chair Jillian Gamez adds. “This reflects a significant lack of confidence in the direction charted by the Ministry of Treasury Board of Finance.”

Non-binding resolution

Such resolutions are not binding, though some resolutions from last year’s UCP annual general meeting have become law, the Edmonton Journal reports.

Under care-first, insurers will provide medical and rehabilitation benefits and income replacement benefits to consumers following a collision, regardless of fault, Canadian Underwriter reported in late August.

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Those injured in an accident will be able to access benefits quickly (“within weeks versus months or years,” according to the government), without the need to sue in court. Injured consumers will also still be able to sue an at-fault driver in limited cases.

Sutherland says care-first includes the ability to sue for Criminal Code convictions like impaired driving and Traffic Safety Act convictions. “Importantly, you’ll be able to sue for any out-of-pocket expenses related to your care.”

He acknowledges Alberta has some of the highest premiums in the country and the province’s rate cap needs to be lifted for care-first to be “truly successful.”

Criticisms misleading, IBC says

In late October, consumer advocacy group Fair Alberta — which claims to be “powered by ACTLA” — accused the province of setting fixed dollars amounts to compensate accident victims for a range of injuries. Sutherland told CU at the time the criticisms may be misleading.

He used the example of a journeyman tradesperson who loses part of a hand in a collision. Fair says that person would receive a lump sum payment of only $41,592.

“They are pointing to the permanent impairment regulation and saying, ‘If you have this injury, you get this and nothing more.’ [And it’s true] that’s what you get for your permanent impairment,” he says. “But they’re ignoring the fact that…you will continue to get your wage benefits for as long as those are needed.

“If you’re not able to work for the rest of your life, you will continue to receive that income replacement, and similarly with the care, making sure you had maximum medical recovery.”

Care-first “is going to have the most generous benefits in this country if you’re injured in a collision; vastly greater than what you get today,” Sutherland says.

A lot of details are still to come, he adds.

“As an industry, we’re still waiting for some key pieces from government on what this model is going to look like so that we can deliver it for January 2027…” Sutherland says. “I’d suggest the path they’re on looks increasingly like it’s going to improve affordability while vastly improving care.

“The more competition and choice we see come back to Alberta, the more drivers can benefit.”

Jason Contant

Jason has been an award-winning journalist with Canadian Underwriter for more than a decade, including the past three years as associate editor and, before that, as digital editor for seven years.