The Canadian property and casualty (P&C) insurance industry has welcomed the federal government’s latest initiative to address fraud in the commercial trucking sector, but experts say additional measures are needed to protect both road safety and insurance affordability.
Budget 2025 included funding aimed at tackling the illegal misclassification of truck drivers, a scheme where companies deliberately classify employees as independent contractors.However, such misclassification not only violates employment rules but also creates insurance challenges, as undertrained or improperly compensated drivers contribute to higher claim frequency and severity. The Insurance Bureau of Canada (IBC) has repeatedly highlighted that drivers operating without proper qualifications pose risks to themselves, other road users, and the stability of insurance pricing.
The initiative follows IBC testimony before the House of Commons Standing Committee on Transport, Infrastructure and Communities, emphasizing that fraudulent practices distort the market and increase costs for insurers, which are ultimately passed on to law-abiding businesses. IBC and the Canadian Trucking Alliance (CTA) are urging governments to prioritize road safety and fair competition to maintain the commercial trucking sector’s insurance viability.
A critical component of mitigating insurance risk is improving driver training. IBC commissioned MNP in 2024 to review entry-level training programs across Canada, finding that current standards leave new drivers underprepared for operating heavy trucks in all conditions.
Alberta has already implemented a new Class 1 Learning Pathway with an apprentice-style approach, and Québec will introduce mandatory Class 1 training pathways on December 15, 2025, including a Road Safety Education Program with 125 hours of theory and practical instruction. These programs aim to equip drivers with the knowledge and skills needed to reduce accidents and insurance claims.
With nearly half of Canada’s commercial truck drivers over the age of 50, the sector faces a looming labour shortage that will intensify as experienced drivers retire. Insurers evaluate driver training, hours behind the wheel, and claims history when underwriting commercial truck policies, meaning stronger training programs directly support lower premiums and better coverage.
While the federal crackdown on fraud is a positive step, IBC notes that provinces must continue to implement robust, consistent entry-level training programs nationwide. Strengthening driver preparation and ensuring compliance with labour and safety standards are crucial not only for reducing insurance claims but also for safeguarding the long-term sustainability of Canada’s commercial trucking industry. Without coordinated action, insurers and policyholders alike face continued exposure to higher risks and costs.
By addressing both fraudulent practices and driver competency, Canada can improve road safety, stabilize insurance markets, and ensure that its commercial trucking industry remains competitive and well-insured.
