Alberta auto insurers lost over $1.2 billion in 2024, report says

A superintendent of insurance report says Alberta auto insurers lost more than $1.2 billion in 2024, and officials have linked provincially set rate caps and rising claims costs to continued market pressure; the government plans a Care‑First model for 2027.

Alberta's auto insurance market reported substantial losses for 2024, and officials and industry groups said several factors drove the result. The superintendent of insurance's annual report cited a Calgary hailstorm and the Jasper wildfire as major contributors to higher claims costs. Industry representatives and provincial officials pointed to provincially regulated rate caps and rising legal and claims costs as adding pressure on insurers. The government has announced a move to a Care‑First model scheduled for 2027. Key points: - The superintendent's annual report states Alberta auto insurers lost more than $1.2 billion in 2024, with about 35 insurers reporting financial losses. - The report links large weather events, including a Calgary hailstorm and the Jasper wildfire, to higher claims payouts. - Industry representatives said provincially regulated "good driver" rate caps and rising legal costs have contributed to financial strain in the market. - The Alberta government has announced plans to implement a Care‑First insurance model in 2027 to handle most injury claims without court proceedings. Summary: The reported losses and the mix of weather-related claims, theft and rising legal awards are reported to be putting sustained pressure on insurers and on consumer choice in Alberta. The superintendent expects that pressure to continue through 2025, and the government plans to introduce the Care‑First model in 2027 as the next major procedural step.