ACTLA cite superintendent report that shows extreme weather is mainly driving up cost pressures
The Alberta Civil Trial Lawyers Association (ACTLA) sent out a release objecting to the proposed care-first auto insurance or other no-fault models or reforms requiring those with serious, life-altering injuries to trade their rights and access to justice for unproven claims of affordability.
“When insurers aren't honest about the main reasons for their losses, Albertans should doubt that removing the right to sue, which holds insurers accountable, will magically lower premiums,” said Jillian Gamez, ACTLA chair, in a news release. “Legal checks and balances are essential when people's future care, income, and independence are at stake.”
ACTLA expressed support for focused reforms, backed by evidence, that pursue better outcomes and avoid needless disputes without sacrificing meaningful legal safeguards for Albertans experiencing permanent injuries. ACTLA suggested:
- swifter and less adversarial access to treatment and benefits to hasten recovery, decrease litigation costs, and minimize disputes
- amended building codes, land use planning, and other climate resilience investments to tackle hail and wildfire risks
- strong measures against theft to prevent avoidable losses
- removal of the Grid rating system, as urged by the Insurance Bureau of Canada (IBC)
“Albertans do not believe that affordability should come at the expense of those who can least afford it -- innocent victims with permanent, lifelong injuries,” Gamez said. “ACTLA stands ready to collaborate with government, regulators, insurers, and other stakeholders on solutions that reduce premiums while preserving meaningful rights for our most vulnerable.”
In its news release, ACTLA noted that frontline medical professionals have expressed similar concerns about no-fault models.
At a recent United Conservative Party annual general meeting, Blair Schachterle, owner of Nose Creek Physiotherapy in Calgary, claimed that the no-fault model eliminates protections for injured claimants and consumers, prevents insurance companies’ medical decisions from facing real scrutiny, and possibly jeopardizes patient care.
Source of losses
In its news release, ACTLA described IBC’s efforts to attribute litigation and legal costs as the main reason for the pressures facing the province’s insurance market as self-serving.
ACTLA cited the Alberta superintendent of insurance’s 2024 annual report, which expected the following to continue outpacing the province’s good driver rate cap:
- increasing claim costs due to inflation
- rising healthcare expenses
- vehicular thefts
- major weather catastrophes
“Albertans deserve an honest, transparent discussion about what's really driving up insurance costs,” Gamez said in ACTLA’s news release. “The report shows extreme weather events and property damage are overwhelming the system. Cutting compensation for crash victims won't stop hailstorms, prevent wildfires, or reduce vehicle theft.”
The report revealed that insurers paid out more in property insurance claims than in auto insurance claims, given the August 2024 Calgary hailstorm, with approximately $3.25 billion in insured losses, and the July 2024 Jasper fire, with $1.3 billion in insured damage.
According to the report, insurance companies paid out around 18 percent more than they collected in auto insurance claims. However, the $1 billion in auto insurance losses arising from the Calgary hailstorm caused most of the $1.2 billion shortfall.
“Alberta is experiencing larger and more frequent catastrophic weather events,” Gamez said. “Any reform that targets only compensation for injured drivers -- while ignoring these dominant cost drivers -- isn't a solution. It simply shifts the burden onto the most vulnerable.”
For liability insurance, which stayed stable and profitable, insurers paid 44 percent less in fees in both 2023 and 2024 than what they collected for premiums.
