Report finds including limited right to sue in new Alberta auto insurance model could cost drivers up to $136 annually
Province's Care-First system unlikely to deliver premium savings for drivers unless changes are made
EDMONTON, ON, June 24, 2025 /CNW/ - A new analysis from consulting firm MNP finds that the government's intention to maintain the ability to sue in Alberta's Care-First auto insurance model could add up to $136 to required premiums annually. In light of the findings, Insurance Bureau of Canada (IBC) is urging the government to resist pressure to keep tort access in the new system and instead stay focused on ensuring victims receive the highest level of care to support their recovery.
"Litigation in Alberta's auto insurance system creates significant costs for Alberta drivers. Removing this, to improve affordability and care, is the main reason the government decided to transition to its Care-First model," said Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC). "The provincial government designs and mandates the auto insurance products that insurers must sell. No other province with a care-based system permits the ability to sue as envisioned in Alberta because of the significant costs it adds for drivers, while doing nothing to improve care for those injured in collisions."
As the Alberta government moves forward with the final design of its new Care-First auto insurance system, it has indicated that those injured in collisions will retain the ability to sue when the at-fault driver is guilty of select Criminal Code and Traffic Safety Act violations, as well as to recover out-of-pocket expenses beyond what is covered by their own insurance policy. IBC commissioned MNP to explore the impact this would have on required premiums. The firm's findings can be found here.
After years of escalating legal costs and government-imposed rate interventions, Alberta's auto insurance market is in crisis. Soaring repair costs, inflation and tariffs are only adding to the pressure. Now, with the government's intention to allow tort access to continue as a cost pressure, the success of Alberta's Care-First model is at risk—eroding the savings that drivers could see when the new system comes into effect in 18 months.
"Drivers deserve an auto insurance system that they can count on when they need it," added Sutherland. "IBC and its members are eager to work with the government to stabilize the system today and ensure the new system brings drivers savings and the access to the best medical benefits so that they can recover."
The Alberta government's Automobile Insurance Rate Board (AIRB) recently published new data on cost pressures impacting driver premiums over the next year, all of which are growing well in excess of the current 7.5% auto insurance rate cap:
Legal costs are increasing 9.7%
Accident benefit costs are increasing 11.9%
Over the last year, costs for vehicle damage coverages were projected to increase by more than 15%.
The AIRB also highlighted that last year auto insurers lost 20 cents for every dollar sold in premiums due to the government's ongoing rate cap. This is creating significant strain on the availability of coverage for drivers today and on the ability of the Care-First system to deliver savings for drivers in the future.
"The Alberta government is trying to deliver significant savings under the new system, but current auto insurance rates are under tremendous pressure," said Sutherland. "The insurance industry supports the government's goal of making auto insurance more affordable for Alberta drivers. But to do that, a significant course correction is needed."
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
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/June2025/24/c0653.html
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
40 minutes ago
- Yahoo
New government report shows 'hard evidence' of racial wage disparities in B.C.
A new government report has found "hard evidence" of salary disparities between racialized and white workers in B.C. Released by the B.C. Anti-Racism Data Committee, the recent report found that in many occupations, "significant gaps" exist between the two groups' earnings. "We found robust evidence of earning gaps or differences between racialized and white workers in 11 of 26 occupational groups," it reads. "In nine of 11 groups, racialized workers had lower earnings." The findings are not surprising to many. "What the report is showing is that the pay gap, which we know exists, continues to exist," says Humera Jabir, a staff lawyer and pay equity advocate with West Coast LEAF who wasn't involved in the report. The study looked at data from Statistics Canada's 2021 census, and focused on B.C.'s full-time workers age 15 to 65 in 2020. It looked at the annual earnings of racialized workers — without specifying their ethnicity — and white ones. After adjusting for factors like age, gender, education and generation in Canada, the occupation groups where racialized workers made less than white workers were: retail and service supervisors; processing and manufacturing; transport helpers and labourers; technical trades and transport officers; middle management; business and finance; general trades; technical science; and natural and applied sciences. The gap ranged from seven per cent a year in the natural and applied sciences group, to 33 per cent in retail, favouring white workers. Only in two groups, health support roles and health professionals, did racialized workers make more. Authors say many factors could be behind the gaps — like data from a particular occupation including a higher proportion of younger workers — however their analysis found that statistical differences persisted even after accounting for variations in things like age and gender. The study found older age did not translate to higher wages for racialized workers as it did for white workers in some sectors. In business and finance, for example, workers' wages were similar until their mid-30s. But from age 50 to 54, racialized workers made about $50,000 less than white workers. Education level also made a difference: in the transport helpers group, which has "no formal education requirements," white workers with a university degree made twice as much as racialized workers with the same education. For those in technical science, racialized workers with post-secondary education earned about the same as white workers with a high school diploma or less. Authors also looked at whether being born in or outside of Canada made a difference to earnings. They found that in some occupations, racialized workers who were first-generation — born outside of Canada — earned less than those who were second-generation or born in Canada. Among first-generation workers in the middle-management group, those who were racialized made nearly $30,000 less than those who were white. Across occupations, disparities were widest between racialized women and white men. Things were reversed in health care: the study found racialized health support workers earned 22 per cent more than white workers. For health professionals, earnings were similar across age groups until age 50 to 54, where racialized workers earned nearly $31,000 more than white workers. Authors say more research is needed to understand why health care is an outlier. "These differences are likely not due to systemic discrimination and are not considered earning gaps," the study reads, adding that further analysis is needed to factor in pandemic-related bonus or overtime pay in 2020. Authors also suggest looking at data like immigration status and more recent information, as 2020 was an "abnormal" year for workers due to COVID-19. Nonetheless, they say, the study lays the foundations for B.C.'s work toward economic inclusion. "It's definitely not the ultimate research," says Zareen Naqvi, executive director of institutional research and planning at Simon Fraser University and a member of the Anti-Racism Data Committee. "You can think about it as a 'first cut' into looking at this issue and providing some hard evidence of what those differences in salaries may be for racialized and non-racialized workers." Hermender Singh Kailley, secretary treasurer of the B.C. Federation of Labour, says the report validates what he's heard anecdotally. He's a member of the Provincial Committee on Anti-Racism, formed earlier this year to help dismantle systemic racism in the province. "Data has to be followed by action, and our province needs to act promptly to break those barriers down," he said. "That's the work we're doing." B.C. passed the Pay Transparency Act in 2023, which mandates government agencies, the province's largest Crown corporations, and companies with 1,000 employees or more to publish annual pay transparency reports. That will extend to companies with 300 employees or more this year, and to those with 50 employees or more by 2026. Human Rights Commissioner Kasari Govender says the legislation is not as robust as she'd like it to be because there are no penalties for non-compliance. "We can collect the data, but if we're not requiring ... employers to actually do something about it, then we're not actually completing our work around pay equity," she said. Jabir with West Coast LEAF echoes that, saying stronger pay equity laws would have the "teeth and mechanisms" to mandate employers to close the wage gaps. B.C.'s Ministry of Labour declined a request for comment. Citizens' Services Minister George Chow said in a statement that the research provides "useful" information for employers and employee groups, and that the report has been shared across government. The Provincial Committee on Anti-Racism is engaging with communities throughout the year and is set to make recommendations based on the report's findings, with their action plan due to be published by June 2026.
Yahoo
42 minutes ago
- Yahoo
Maple Leafs GM's First Words After John Tavares Contract Extension
Maple Leafs GM's First Words After John Tavares Contract Extension originally appeared on Athlon Sports. The Toronto Maple Leafs will enjoy four more years of former team captain John Tavares, and general manager Brad Treliving made clear that the extension came together only because the player was determined to stay. Advertisement Tavares announced his new four-year, $17.52 million contract extension on Friday through an Instagram post on his foundation's account. Hours later, Tavares and Treliving held a virtual press conference on Zoom, and the Leafs GM praised the player for making financial sacrifices to remain in his hometown. 'It's a really good day,' Treliving said. 'I want to give a lot of credit, first and foremost, to John. His commitment was illustrated by what he did here. There was an opportunity for John to make a lot more elsewhere." "Full marks, full credit to John.' Tavares, who grew up in nearby Mississauga, had reportedly drawn interest from multiple teams. Advertisement According to NHL insider Pierre LeBrun, at least one team offered Tavares a two-year, $16 million deal with an annual cap hit of $8 million. Instead, the 34-year-old signed at a cap hit of $4.38 million, well below market value considering his 74-point season through 75 regular-season games last year. Toronto Maple Leafs forward John Tavares (91) gets congratulated after his 1,100th E. Sokolowski-Imagn Images 'We would all agree that there was going to be an opportunity for John to make a lot more money elsewhere, and his focus was staying here,' Treliving said. 'So his work and his commitment and his desire sort of steered the process on this negotiation.' Tavares will turn 35 in September and won't reach free agency again until 2030. The new contract also includes a full no-move clause for the first two seasons and a five-team trade list after that, making it a near lock for the veteran forward to retire wearing the blue and white sweater. Advertisement Related: 'We're Fortunate': Maple Leafs' GM Sounds Off on Mitch Marner Related: Paul Bissonnette Hears of 'Agreed-Upon' Brad Marchand-Maple Leafs Deal This story was originally reported by Athlon Sports on Jun 28, 2025, where it first appeared.
The Verge
an hour ago
- The Verge
Kobo's Libra Colour and Elipsa 2E e-readers have dropped to some of their best prices
Kobo is discounting two of its best e-readers. The Kobo Elipsa 2E, a competitor to the Kindle Scribe, is available for an all-time low of $349.99 ($50 off) from Rakuten Kobo and Target. Meanwhile, the Kobo Libra Colour is available for $209.99 ($20 off) from Amazon, Target, and Rakuten Kobo. The sale runs through July 10th. The Kobo Elipsa 2E is my top pick for taking notes while reading. Its spacious 10.3-inch display lets you write directly on ebook pages — whether in margins, between lines, or wherever inspiration strikes — giving you a natural, paper-like experience. While Amazon's Kindle Scribe supports on-page writing, its tools are far more limited; you can't freely annotate, circle text, or mark up pages with the same ease. For anyone wanting an e-reader that doubles as a digital notebook, the Elipsa 2E offers a more intuitive and versatile experience. The Kobo Elipsa 2E is an ad-free 10.3-inch e-reader you can write on with the included stylus. It offers a whole host of useful features, like the ability to convert handwriting to typed text and a great selection of pen types. Meanwhile, the Kobo Libra Colour is worth a look if you want something smaller but still feature-packed. Like the Kindle Colorsoft, it features a compact 7-inch color display that makes highlights, annotations, and comics pop compared to monochrome screens. Although the Colorsoft's hues are slightly more vibrant, the Libra Colour provides a pleasant, easy-on-the-eyes experience. It also includes physical page-turn buttons and stylus compatibility (sold separately), allowing you to mark up text or jot notes — features that the Colorsoft lacks despite costing more. Kobo's main drawback is the lack of native Kindle book support, but it makes up for this with broader file format compatibility and support for direct borrowing from public libraries through OverDrive. Plus, if you don't mind a few extra steps, you can always convert Kindle books for use on Kobo devices. The Libra Colour is one of the newest e-readers from Kobo and one of the first with color. With both OverDrive and Pocket support, it gives readers considerably more options than e-readers from bigger brands like Amazon. Sign up for Verge Deals to get deals on products we've tested sent to your inbox weekly.
