Darren Godfrey is Senior Vice President, Western Canada at Intact Insurance.Affordability is top of mind for Albertans, and people are looking for solutions that make life a little more manageable. This includes auto insurance, which has become an area of financial strain for Albertans and their families. As the government looks to reduce costs for consumers, there is an opportunity to create an auto insurance environment that is more affordable and works better for drivers. To do so, they need to address the costs that put pressure on premiums. And you might be surprised to learn what is the number one cost driver in Alberta’s system.Many have pointed fingers at global inflation, which is a contributing factor. Inflation has driven up the cost of auto parts, which has made repairs 18% more expensive than three years ago. While the cost of doing business has increased, Intact has worked aggressively to manage premiums and control repair costs by leveraging our size and supply chain..RUBENSTEIN: From revered indigenous storyteller to ‘pretendian’ — Thomas King’s fake indigenous identity crisis sparks backlash.But these pressures pale in comparison to what is truly driving affordability challenges, namely legal intervention in Alberta’s auto insurance system. Injury costs are now the largest pressure point on premiums, with litigation a significant contributor. Between 2018-2022, over $1.2 billion — roughly 20% of the premiums drivers pay — went to legal costs associated with claims, more than anywhere else in the country. And the situation is only getting worse. At Intact, claims with legal representation have nearly doubled in the last four years, with limited benefits for customers. In fact, claimant lawyer contingency fees represent about 38% of a settlement — leaving less for recovery and rehabilitation for Albertans..That is why the government’s move to a Care-First model makes sense. This new system aims to address these pressures, provide Albertans with faster, better care, and make premiums more affordable. These changes have the potential to make Alberta one of the most effective and efficient auto insurance systems in the country. As a company that represents 1 in 5 Alberta drivers, this is good news for our customers.And there is reason to be optimistic. Early assessments suggest that if Care-First functions as intended, drivers will see premium relief once the changes are fully implemented..SLOBODIAN: RCMP Veterans' Association apologizes for sending MAiD suicide talk invitation.Affordability is only one part of the puzzle. Drivers deserve a smoother experience when they are injured. Under Care-First, treatment is expected to start faster and continue for as long as medically necessary. The name speaks for itself. It focuses on recovery first and foremost — prioritizing bringing resources back to injured Albertans.Care-First still preserves legal rights for Albertans. Alberta has chosen to maintain the ability for people to sue in serious circumstances, giving consumers broader legal rights than our neighbouring provinces. Routine claims become more straightforward and will no longer require legal action. At the same time, drivers still have access to the courts when the situation truly warrants it, for example, a serious Criminal Code violation like impaired driving. Care-First is a practical balance between efficiency and accountability that improves affordability for everyday Albertans..The government has consulted with everyone involved in the system to get Care-First right. Input from a range of perspectives, from consumers and insurers to legal experts and healthcare providers, has helped shape what is expected to be a better system for Albertans.Having worked on Alberta’s insurance reforms over 20 years ago, it is hard not to see the parallels today. The province faced many of the same struggles then, and the lessons remain. I have seen what succeeds and what does not. The approach Alberta is taking reflects a clear understanding of those lessons and, from my perspective, positions the province strongly..OLDCORN: Alberta’s Bill 11 won’t ‘Americanize’ healthcare, it could finally move the needle on wait times.There is still much work to be done as the details are finalized. But the future for auto insurance is clearer than it has been in a long time. Alberta is building a system that puts recovery and affordability on equal footing while preserving legal rights for Albertans. If the development of Care-First continues with this balance, it can lead to a more stable, predictable experience and better support for Albertans across the province.Darren Godfrey is Senior Vice President, Western Canada at Intact Insurance.
