ACTLA: Don't Force Seriously Injured Albertans to Subsidize Hailstorms, Wildfires, Theft, and Inflation

Government Report Confirms Major Cost Pressures Stem from Weather Catastrophes

EDMONTON, AB, Jan. 12, 2026 /CNW/ - The Alberta Civil Trial Lawyers Association (ACTLA) acknowledges the pressures on Alberta's insurance market but rejects the Insurance Bureau of Canada's (IBC) self-serving efforts to blame litigation and legal costs as the primary reason.

The Alberta Superintendent of Insurance's 2024 Annual Report (the Report) paints a comprehensive picture: rising claims costs from inflation, escalating healthcare expenses, vehicle theft, and massive weather-related catastrophes are expected to keep outstripping the government's Good Driver Rate Cap.

"Albertans deserve an honest, transparent discussion about what's really driving up insurance costs," said Jillian Gamez, ACTLA Chair. "The Report shows extreme weather events and property damage are overwhelming the system. Cutting compensation for crash victims won't stop hailstorms, prevent wildfires, or reduce vehicle theft."

Property Losses Outpace Auto -- No-Fault Reforms Ignore the Real Crisis

The Report shows insurers paid out more in property insurance claims, driven by two major disasters: the August 2024 Calgary hailstorm and the July 2024 Jasper fire. The Calgary hailstorm caused an estimated $3.25 billion in insured damage, while the Jasper fire added $1.3 billion in insured losses.

While insurers paid out about 18% more than they collected in auto insurance claims, most of the $1.2 billion shortfall is due to the $1 billion in auto insurance losses due to the Calgary hailstorm.

Importantly, liability insurance, which defends and pays out lawsuits, remained stable and profitable. Insurance companies paid out significantly less than they collected for these premiums-44% less in both 2023 and 2024. Hardly evidence of runaway litigation costs.

"Alberta is experiencing larger and more frequent catastrophic weather events," said Gamez, "Any reform that targets only compensation for injured drivers -- while ignoring these dominant cost drivers -- isn't a solution. It simply shifts the burden onto the most vulnerable."

Protect Rights for the Seriously Injured

ACTLA will vigorously oppose any product reform, including no-fault models like the proposed Care First , that requires Albertans with serious, permanent, life-altering injuries to surrender their legal rights and access to justice in exchange for unproven promises of affordability.

"When insurers aren't honest about the main reasons for their losses,  Albertans should doubt that removing the right to sue, which holds insurers accountable, will magically lower premiums," said Gamez. "Legal checks and balances are essential when people's future care, income, and independence are at stake."

This concern is shared by frontline medical professionals. Blair Schachterle, owner of Nose Creek Physiotherapy in Calgary and opposed no-fault at the recent UCP AGM because it removes protections for injured claimants and consumers. As he notes, medical decisions made by insurers would face no real scrutiny, potentially compromising patient care.

Tackle Root Causes Without Sacrificing Injured Albertans

ACTLA supports targeted, evidence-based reforms that improve outcomes, reduce unnecessary disputes, and preserve meaningful legal protections for those with permanent injuries. ACTLA recommends the following measures:

1. Faster, less adversarial access to treatment and benefits to support quicker recovery, lower dispute costs, and minimize disputes
2. Significant investments in climate resilience, including updated building codes and land-use planning to mitigate hail and wildfire risks.
3. Robust anti-theft measures to prevent losses before they happen.
4. Additionally, ACTLA supports the IBC's call to remove the GRID rating system

"Albertans do not believe that affordability should come at the expense of those who can least afford it -- innocent victims with permanent, lifelong injuries," said Gamez. "ACTLA stands ready to collaborate with government, regulators, insurers, and other stakeholders on solutions that reduce premiums while preserving meaningful rights for our most vulnerable."

ACTLA (1986) is dedicated to advancing jurisprudence, improving the adversary system and trial by jury, promoting the administration of justice, and advocating for the public good. www.actla.com

To learn more about this policy – www.fairab.ca

SOURCE Alberta Civil Trial Lawyers Association

Media Contact: Erin Stroud, Executive Director ACTLA