Personal Injury Lawyers Fight Care-First Reforms as Drivers Await Lower Costs

EDMONTON, AB, July 8, 2026 /CNW/ - Insurance Bureau of Canada (IBC) has launched a public awareness campaign to highlight how ongoing efforts to overturn Alberta's Care-First auto insurance reforms could put at risk the estimated $260 in annual savings the Government of Alberta says drivers will begin seeing in January 2027. The campaign focuses on what is at stake for consumers, including lower premiums, enhanced recovery benefits and greater long-term affordability.

"Alberta's personal injury lawyers continue to oppose the government's Care-First reforms and instead want to preserve lawsuits and legal fees in the auto insurance system. This would preserve the status quo for 700 personal injury lawyers at the expense of the province's 3.2 million drivers," said Aaron Sutherland, Vice-President, Pacific and Western, IBC. "As announced by the Government of Alberta, Care-First reforms are on track to deliver an estimated $260 annually in savings to the average driver, while providing the country's highest level of recovery benefits for those injured in collisions."

IBC's campaign will launch across various platforms, will direct Albertans to lowerlegalfees.ca, which outlines what's at stake for consumers if the province's trial lawyers are successful in stopping the new auto insurance model. The website also highlights the significant benefits and estimated savings that Alberta drivers can access under the new Care-First model.

"Today up to 40% of a litigated claim goes to personal injury lawyers, and not the injured driver. Against that backdrop, Alberta's personal injury lawyers have expressed opposition to the Care-First reforms, despite ongoing concerns about rising litigation costs and their impact on auto insurance affordability for drivers," said Sutherland. "Legal costs have escalated 203% in recent years and must be addressed to improve affordability. That's why the government was right to introduce the made-in-Alberta Care-First insurance system. It reduces out-of-control legal costs, generates significant savings for drivers and expands the care and benefits available to people injured in collisions."

Alberta's insurers are actively preparing for the new insurance model and are awaiting the final legislative and regulatory details needed to deliver the new model and its associated savings on January 1, 2027.  

Strong public support for reducing legal costs

New polling has found the majority of Albertan's (57%) support a decrease in the ability to sue in exchange for the savings and improved benefits that Care-First provides. In sharp contrast, just 13% of respondents want to maintain the right to sue at the same level as in the current auto insurance system.

"Albertans believe the government has struck the right balance in designing its new auto insurance system," said Sutherland. "The new system will deliver lasting premium stability for drivers by removing escalating legal costs and enhancing care for those injured in collisions. Price stability in auto insurance is welcome relief from the affordability challenges straining many other areas of the economy. The over 17,000 Albertans working in the insurance industry stand ready to implement Care-First with the government so consumers can benefit starting in January 2027."

About Insurance Bureau of Canada

Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up the vast majority of Canada's highly competitive property and casualty (P&C) insurance market.

As the leading advocate for Canada's private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow.

IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses.

For media releases, IN Focus articles or to book an interview with an IBC representative, visit ibc.ca. Follow us on LinkedIn, X and Instagram, and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC. We're here to help.

SOURCE Insurance Bureau of Canada