Many Albertans 'skeptical' of proposed insurance reform: Nanos poll

CBC

06-05-2025

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The province's proposed auto insurance reforms come with the promise of reduced rates, but a recent survey suggests not all Albertans are convinced.
Only one in five Albertans considers a reduction in auto insurance premiums to be likely if the Alberta government moves forward with a "no-fault" insurance system, according to a study released by Nanos Research on Tuesday.
Expected to take effect at the start of 2027, the legislation aims to provide drivers injured in collisions with access to medical treatment and income support rather than having claims taken to court.
The province's goal with these changes is to reduce the time and money spent on litigation, which in turn would result in lower auto insurance rates. This care-first system would provide better, faster and cheaper care for Albertans, who will see up to $400 in yearly savings, according to the Ministry of Treasury Board and Finance.
Forty-seven per cent of Albertans consider such a reduction in auto insurance premiums "unlikely" compared with only 19 per cent who consider it "likely" to happen, according to the Nanos poll.
"Albertans are sending a clear message: People want fairness, accountability, and the ability to seek justice when they're harmed," said Nik Nanos, chief data scientist at Nanos Research, in a media release. "They are skeptical that the proposed changes will lower their premiums."
The poll, which surveyed 1,087 Albertans between March 24 and April 1, suggests that the province's auto insurance system "is not a pressing issue for Albertans," with 52 per cent saying it's not urgent. When compared with other issues like health care, cost of living, education and affordable housing, less than one per cent of respondents cited auto insurance as a top priority.
The insurance reform legislation was put forward by Finance Minister Nate Horner as Bill 47, or the Automobile Insurance Act, on March 24, after first being announced by the province last fall.
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When asked about the findings of the study, Horner said the legislation will ultimately benefit Albertans, who on average pay the second-highest auto insurance rates in Canada.
"I guess we better show 'em the savings are real," he said.
This year, the auto insurance rate cap for good drivers was raised to 7.5 per cent, with the province saying the increase accounts for higher costs related to legal matters, vehicle damage repairs and natural disasters.
Nanos cited a June 2024 survey commissioned by the province, which found that 73 per cent of respondents agree that having the ability to sue at-fault drivers is an important element of ensuring accountability, complementing the pollster's own finding that over four in five Albertans emphasize the importance of holding people legally and financially accountable.
When asked to choose between lower auto insurance premiums and having the right to sue, 48 per cent of respondents said the former was more important, while 38 per cent chose the latter.
While the legislation will limit the extent to which claimants can take at-fault drivers to court, Horner clarified that litigation will still be an option when appropriate.
"There will be tort options within this system for egregious, serious offences," he said.
Details of insurance reform not yet ironed out
Under the new legislation, most injury claims will no longer be settled in court. Lawsuits can be filed when the at-fault driver has been convicted of a serious driving offence, with those specific offences yet to be defined. Claimants will also be able to sue for out-of-pocket expenses outside of the coverage of their insurance policy, and will have the right to appeal decisions made by their insurer regarding those benefits.
With many details left undefined, the current legislation is simply a framework expected to be fleshed out later this year, said Aaron Sutherland, a vice-president with the Insurance Bureau of Canada.
"Until we see the details from the province of exactly how large this window of court access is going to be, we don't know the cost associated," said Sutherland. "But one thing we do know: the more lawyers are involved, the less drivers are going to save."
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The study was commissioned by the Alberta branch of the Canadian Bar Association, representing 5,500 lawyers and members of the legal profession.
A report commissioned by the province and released April 2024 suggested switching to a no-fault system could result in the loss of 650 to 800 jobs in the legal field, stemming from the elimination of the vast majority of accident compensation legal cases.
Potential savings on auto insurance will be determined by the details of the finalized legislation, including the extent of the ability to sue, and factors such as the state of Canada's auto sector, which is affected by uncertainty due to tariffs imposed by U.S. President Donald Trump.
"The longer these tariffs remain, and if we do see further tariff action by the United States and reciprocated by Canada in the auto sector, that is going to have an impact on the price drivers are paying for their insurance moving forward," said Sutherland.
Economic factors aside, whether policyholders will actually save on auto insurance depends on the balance that the province strikes between the amount of care provided by the new system and the legal costs and cases remaining in the system.
"The province is talking about having the greatest ability to sue of all care-based systems in Canada, but there is going to be a cost associated with that," said Sutherland.
Similar systems in Saskatchewan, British Columbia and Manitoba "don't allow nearly the ability to sue that Alberta is currently exploring," he said.
Unlike those provinces, which have public providers for mandatory auto insurance, Alberta is sticking to private insurance companies under the new system. The province stated that a public insurer would cost nearly $3 billion to establish and millions to operate annually, making private delivery more financially viable for taxpayers.
Eighteen per cent of survey respondents said they trust the provincial government to oversee a no-fault insurance system with private insurance companies "prioritizing victims over profits." Forty-six per cent said they do not trust the province to do so, with 48 per cent disagreeing with the notion that the government would ensure fair payouts for those unable to take their claims to court.
The poll's probability sample of 1,087 respondents has a margin of error of ± 3.0 percentage points, 19 times out of 20, according to Nanos Research.