Are Alberta auto insurers leaving the market?The recent announcement of Definity Insurance acquiring Travelers Canada may be a telling answer.A claim that is often used by the government to justify Bill 47, better known as the Care First auto insurance system, which is still scheduled to be implemented on January 1, 2027.This system would regulate Alberta's auto insurance industry. This is exemplified by Insurance Bureau of Canada (IBC), which stated, "The rate cap has undermined the competitive market, forcing some insurers to leave the Alberta market altogether and causing confusion and frustration for drivers, who increasingly face challenges securing the coverage they need."The rate cap is the limit the government puts on Alberta auto insurance premiums, which is currently set at 7.5% for 2025 and 2026. .Definity's acquisition of Travelers means "a dominant auto insurance player is being created," stated Nudorra Capital, a litigation loan company, in a statement. "Combining Definity and Travelers creates a rival to TD Insurance, which is ranked fourth in the market."This suggests insurers are not fleeing the market. "One of the reasons that the government is using to justify Care First is that 'insurers are fleeing the province' because it is too expensive to operate here," stated Tyler van Vliet of Crash Lawyers, a personal injury firm.."Clearly that is not the issue.""Now that Care First strips accident victims of their rights to seek compensation after an accident, the billion-dollar insurance companies are sweeping in to take advantage of the situation."Van Vliet points to the scale of these insurance companies, stating, "These insurance companies aren’t struggling; they are multi-billion-dollar corporations that are growing, merging, and consolidating power across Canada.""The proposed 'Care First' no-fault system would hand them even more control while taking away the rights of injured Albertans to stand up for themselves."."Under Care First, victims will be forced to face these enormous insurance conglomerates alone, without the right to legal representation or to sue for fair compensation."
