When it comes to Canada’s economy in 2026, the old adage holds true: The only certainty is that nothing is certain. With ongoing financial volatility expected, the country needs policy decisions that bring stability, protect Canadians, and support a stronger, more resilient economy.
These goals are served by the everyday work of Canada’s private home, auto and business insurers, and they will guide the priorities of Insurance Bureau of Canada (IBC) for the year ahead. As part of IBC’s mandate to protect Canadians from the risks of today and tomorrow, we advocate for practical, consumer-focused reforms that help Canadians and support our nation’s economy.
For 2026, this includes:
Ensuring a smooth implementation of auto insurance changes in Alberta and Ontario;
Advancing a national solution on earthquake risk to shield the country from the economic impacts of a catastrophic event;
Demonstrating how reducing red tape in financial services can help fuel Canada’s economic potential.
Read on for more details about these critical national priorities, all aimed at building a more secure, affordable and resilient future for Canadians.
Delivering value to drivers in Alberta and Ontario
What do drivers want from their auto insurance system? They want the care and benefits needed to recover from a collision, and they want premiums to remain affordable. Achieving this balance is the responsibility of provincial governments, as they oversee auto product design through legislation, and update it from time to time to better serve consumers.
In 2026, the industry faces the unique challenge of implementing two major sets of auto insurance reforms – one in Alberta and one in Ontario.
Alberta is transitioning to the Care-First system effective January 1, 2027. This new model aims to deliver faster, better care for collision victims and provide the most generous accident benefits in Canada. A core feature of the system is ensuring that claims dollars go to the care of individuals injured in a collision, rather than being directed to lawyers to fund costly court battles.
These reforms represent a significant win for Alberta drivers, and there is considerable pressure to get the transition right. The government still needs to finalize several details, and IBC will continue working closely with the province to help ensure the reforms deliver the results that Albertans deserve. Over the next year, the industry will also focus on the practical work required to implement a new product: system upgrades, staff training, catastrophic claim management, and consumer education.
In Ontario, beginning July 1, drivers will move to an updated auto insurance system that gives them more choice. Certain benefits – including income replacement, non-earner benefits and caregiver benefits – will become optional. Many Ontarians already receive these benefits through workplace plans or other coverage, meaning they may not need to purchase them through their auto insurance policy. This change gives drivers the flexibility to choose the benefits they need
IBC and its members are focused on implementing these reforms and ensuring that drivers understand their options. This spring, IBC and the Insurance Brokers Association of Ontario will launch a consumer education campaign to help Ontarians make informed decisions about the coverage that best meets their needs.
Addressing an existential threat: Earthquake risk
A major earthquake in BC or Quebec would cause devastating destruction to communities, infrastructure and essential services in a matter of minutes. If you don’t live near a fault line and think you’re immune to this devastation, think again. The damage would ripple far beyond the epicentre – shutting down ports, rail lines and supply chains, displacing thousands, and triggering economic and financial repercussions across the entire country.
Canada is not ready for the devastating impact that such an event will have. It is, in fact, the single biggest threat to Canada’s economic resilience. So, preparedness is a national imperative.
Fortunately, the federal government has clearly signalled a willingness to advance a solution to earthquake risk. In the 2025 budget, a single but significant sentence commits Ottawa to begin consultations that aim to “ensure the stability of Canada’s insurance sector” when an extreme earthquake hits. The government recently announced an earthquake early warning system in Montreal and Ottawa, reinforcing the possibility of a significant earthquake and underscoring our country’s need to be ready.
IBC views this as a pivotal opportunity to work with the federal government on a solution that protects Canadians while safeguarding the economy.
Reducing red tape = a stronger economy
Eighty-one per cent.
This is how much regulatory compliance costs have increased across Canada’s property and casualty insurance sector in just two years (2022–24), according to IBC’s new Regulatory Compliance Cost Survey.
It’s a massive leap and it’s a problem not just for insurers, but for all Canadians. There is a connection between regulatory burden and economic success. Data from Statistics Canada shows that increasing regulation of Canadian businesses has a measurable drag on the country’s economic performance.
However, the tide appears to be turning toward reducing the industry’s regulatory burden, with a view to both protecting consumers and spurring Canada’s economy and innovation.
The 2025 federal budget included a commitment to ensure that federal financial-sector consultations are more predictable and transparent. IBC is continuing its advocacy with government officials and regulators and ensuring it is providing recommendations that support the federal government’s commitment to economic growth.
In a year that will be defined by uncertainty, IBC’s priorities are clear: We will work with governments and stakeholders to protect Canadians, strengthen our nation’s economy and build a more resilient future.
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