The Alberta Civil Trial Lawyers Association (ACTLA) has questioned the Insurance Bureau of Canada's (IBC) claims that litigation and legal costs are the primary drivers of rising insurance premiums in Alberta.
The association points to data in the Alberta Superintendent of Insurance's 2024 Annual Report, which showed that inflation, healthcare expenses, vehicle theft and major weather-related events are exerting the most pressure on the market.
According to the report, property insurance losses outpaced auto claims, with two major disasters - the August 2024 Calgary hailstorm and the July 2024 Jasper fire - accounting for an estimated $4.55 billion in insured damages. Auto insurers reported a shortfall of roughly $1.2 billion, largely linked to the Calgary hailstorm, while liability insurance premiums remained profitable, with payouts significantly below collected premiums.
ACTLA chair Jillian Gamez highlighted the role of extreme weather in driving costs. She said that reforms targeting compensation for injured drivers would not address the underlying causes of premium increases and could shift the financial burden on to the most vulnerable policyholders.
The association has raised concerns about no-fault models, such as the proposed Care First plan, which would require claimants with serious injuries to give up their legal rights in exchange for potentially lower premiums.
Meanwhile, ACTLA has advocated for targeted, evidence-based measures to address the market’s cost pressures without limiting access to justice. Recommendations include faster and less adversarial access to treatment and benefits, investments in climate resilience such as updated building codes, and stronger anti-theft measures. The association also supports eliminating the GRID rating system, as called for by the IBC, but stresses that affordability should not come at the expense of policyholders with permanent injuries.
Implications for Alberta's insurance market in 2026
The debate between ACTLA and the IBC is shaping expectations for regulatory and market developments in 2026. Insurers may face increasing pressure to justify premium increases as legislators and regulators scrutinize the impact of extreme weather and other systemic cost drivers.
Proposed no-fault reforms, if adopted, could alter the structure of auto insurance, particularly for claimants with serious injuries, while maintaining liability coverage for property and catastrophe claims will remain a priority.
Targeted interventions, such as faster claims processing, climate risk mitigation measures, and anti-theft initiatives, could stabilize rates without reducing policyholder protections.
The outcome of these discussions is likely to influence insurer pricing strategies, reserve allocations, and regulatory expectations, shaping both the availability and cost of coverage across Alberta’s personal and commercial insurance markets in the coming year.
