Quebec Premier François Legault testified Tuesday that he was not informed about hundreds of millions in cost overruns at the province’s auto insurance board, a scandal now raising questions about governance at one of Canada’s largest public insurance systems.
The Gallant Commission is examining how SAAQclic, the online platform for renewing licences and booking road tests, exceeded its budget by at least $500 million, bringing the project’s total cost to more than $1.1 billion.
The Société de l'assurance automobile du Québec (SAAQ) not only manages the province’s licensing and road safety programs but also provides basic liability insurance to all Quebec drivers. For this reason, the inquiry has implications beyond technology, touching on the credibility of Quebec’s auto insurance framework.
Unaware of cost overrun
According to a report from The Canadian Press, Legault said he only became aware of the cost overrun in February 2025 when the auditor general’s report revealed the ballooning price tag. He described it as abnormal that such a significant figure was not communicated to him earlier. Testimony presented to the inquiry suggested that warnings about growing financial risks had surfaced years earlier, including a $222-million shortfall flagged to senior officials in 2022.
The scandal carries financial implications for the province’s four million drivers. While SAAQ’s premiums are set through a dedicated fund, mismanagement of major projects could affect public confidence in the insurer’s ability to control costs. Insurance industry observers note that transparency and sound governance are essential for public auto insurance models, particularly at a time when claims costs are increasing due to inflation, rising repair expenses, and climate-related losses.
Political consequences felt
Political consequences have already been felt. The Quebec government dismissed SAAQ CEO Éric Ducharme in July, following the earlier removal of Denis Marsolais after the troubled rollout of the platform in 2023. Legault attributed the core of the problem to the leadership of the auto insurance board, suggesting that ministers were not made aware of the scale of the overruns.
Opposition leaders rejected this position, arguing it was implausible that government officials and the premier could have been unaware of the financial risks. They have called for reforms to ensure that public insurance systems operate with greater independence and accountability.
As the inquiry continues, industry experts said its findings may shape how other public insurers in Canada strengthen governance and oversight.
With SAAQ at the heart of Quebec’s compulsory auto insurance scheme, the outcome could influence how similar systems balance political responsibility with the financial management expected of an insurer.
