Alberta Premier Danielle Smith has issued a clear warning to auto insurers and trial lawyers: cooperate with the government’s planned reforms, or face the return of public auto insurance.
“We’re challenging the insurance companies and we’re challenging the trial lawyers. Make this work because if you don’t, there’s the next logical step,” Smith said.
Her government is rolling out a new auto insurance system in 2027, aimed at setting fixed payouts for injuries and other costs from auto accidents while limiting opportunities for lawsuits. The plan is designed to reduce premiums and create savings for drivers.
Smith emphasized that she prefers free enterprise but is willing to consider a government-run public auto insurance model if the market fails to deliver fair premiums. “We are attempting to make this market work. The end of the line here is if the trial lawyers and the insurance companies can’t make the new market work, the next step is a public insurance model,” she said.
Meanwhile, insurers are lobbying for higher premiums immediately, putting additional pressure on the government as it prepares for the 2027 overhaul. Smith insists that reform remains the priority, but she is prepared to pivot to public insurance if necessary, citing examples from provinces like Saskatchewan and Manitoba.
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