The increasing cost of repairs, parts shortages and rising auto thefts are all driving up insurance rates across Canada. But the single biggest reason for the increase in rates in Alberta is the increasing costs of personal injury claims.

Alberta is undergoing significant changes to its auto insurance system, including a shift towards a no-fault model and increased rate caps for good drivers. The changes aim to streamline claims processes, reduce litigation, and provide better benefits for accident victims.

The “Care-First” system, expected to be fully implemented in 2027, will focus on care and support for those injured in collisions, rather than legal battles. Additionally, the rate cap for good drivers has been increased to 7.5% for 2025.

Here’s a more detailed breakdown of the changes:

Short-Term Changes (2025):

• Increased Rate Cap for Good Drivers: In 2025, rate increases for good drivers will be capped at 7.5% per year, with a 2.5% rider allowed for natural disaster-related costs.

“Good Driver” Protection:

This protection applies to drivers with no at-fault claims in the last six years, no criminal code traffic convictions in the last four years, and no major traffic convictions in the last three years.

Long-Term Changes (Starting 2027):

• No-Fault System (Care-First): A “Care-First” system will be introduced, shifting the focus to providing medical, rehabilitation, and income support benefits for all those injured in collisions.

Limited Right to Sue:

Victims of accidents will generally not be able to sue at-fault drivers, except in cases where the at-fault driver is convicted of a criminal offense (e.g., impaired driving).

Focus on Care:

The system aims to expedite the process of providing care and support for those injured, reducing the need for lengthy legal battles.

Independent Medical Examinations:

The legislation will outline the process for independent medical examinations, ensuring fair and transparent assessments of injuries.

Alberta Automobile Care-First Tribunal:

An independent tribunal will be established to address disputes between insurers and individuals regarding the benefits provided under the new system.

Key Objectives of the Reform:

• Reduce Litigation: The no-fault system aims to significantly reduce the need for court battles and legal fees.

Improve Benefits:

The Care-First system is designed to provide more comprehensive and faster access to benefits for accident victims.

Lower Premiums:

The government anticipates that the changes will lead to lower average premiums for drivers.

Hold Bad Drivers Accountable:

While the system focuses on care, it will continue to hold at-fault drivers accountable through higher premiums.

Becoming an Auto Insurance Broker in Alberta

Interested in a career in auto insurance? To become a broker in Alberta, you need to earn a Level 1 General Insurance License. A great first step is taking the ILS General Insurance Level 1 Licensing Exam Prep Course, which covers the essentials of auto, property, and liability insurance, as well as Alberta-specific regulations.

After completing the course, you must pass the Alberta Insurance Council’s Level 1 exam and find employment with a licensed brokerage. From there, you can start working with clients and continue your professional development through ongoing education and higher-level licensing.

It’s a solid path into a growing industry – especially with big changes ahead in Alberta’s auto insurance system.

Alberta’s auto insurance reform represents a major shift in how accidents and claims are handled, with a clear emphasis on supporting injured individuals over engaging in costly legal disputes. By implementing short-term protections for good drivers and laying the groundwork for a comprehensive no-fault system through the Care-First model, the province is aiming to create a fairer, more efficient insurance landscape. These changes are expected to provide better benefits, reduce litigation, and stabilize premiums in the long run. While the full impact of the reforms will unfold over the coming years, Alberta drivers can expect a system that prioritizes care, clarity, and accountability.

ILScorp: 100% Canadian, 100% Committed

At ILScorp, being Canadian isn’t just a label – it’s part of our identity. From our headquarters in beautiful British Columbia to our team of dedicated professionals, we are proudly 100% Canadian. Our commitment to serving the Canadian insurance and financial services industry runs deep, supporting thousands of brokerages and licensees from coast to coast.

Rooted in Canada, Built for Canadians

Unlike many online education providers, ILScorp is not a multinational corporation outsourcing its content or support. We are proudly headquartered in Canada, with every member of our team working right here at home. Whether it’s course development, customer service, or technical support, you are always working with someone who understands the Canadian landscape – because we live it, just like you.

Canadian Subject Matter Experts & Instructors

Every course we offer is designed by Canadian experts who truly understand the industry, regulations, and challenges faced by professionals across the country. Our instructors are highly experienced in their fields, bringing real-world knowledge tailored to Canada’s unique business and regulatory environment.

Supporting Canadian Brokerages and Licensees

ILScorp has been a trusted partner for thousands of Canadian brokerages and licensees for years. Our training solutions help professionals meet their provincial licensing requirements while staying up to date with industry trends. Whether you’re an insurance broker, adjuster, financial services professional, or thinking about starting a new career, we provide relevant, high-quality training built for the Canadian marketplace.

Your Data Stays in Canada

At ILScorp, we know how important data security and privacy are to Canadian professionals. That’s why all our data is housed in Canada, ensuring compliance with national data protection laws. You can trust that our information is stored securely, right here at home, with the highest standards of privacy and security.

Proudly Canadian, Always

Our commitment to Canada goes beyond business – it’s a matter of pride. We understand the importance of supporting Canadian professionals with high-quality, accessible training. By choosing ILScorp, you’re not just investing in your education; you’re supporting a homegrown company that values and strengthens the Canadian industry.

As a 100% Canadian company, we stand behind our mission to empower Canadian professionals. When you learn with ILScorp, you’re learning with a company that shares your values, understands your industry, and is proud to call Canada home.

Choose Canadian. Choose ILScorp.

Understanding the Difference Between a Life/A&S Licensee and a General Insurance Licensee in Canada

Insurance professionals in Canada must hold specific licenses to sell and service different types of insurance products. Two common licensing categories are the Life and Accident & Sickness (A&S) Insurance License and the General Insurance License. While both licenses pertain to the insurance industry, they serve distinct purposes, have different regulatory requirements, and cater to separate markets. Understanding the differences between these two licenses is crucial for anyone considering a career in the insurance sector.

Life and Accident & Sickness (A&S) Insurance License

A Life and A&S Insurance License allows an individual to sell life insurance and accident & sickness insurance policies. These policies typically provide financial protection in case of death, disability, critical illness, or medical expenses. This license is suitable for professionals who wish to advise clients on long-term financial security and health-related insurance products.

Types of Insurance Covered

• Life insurance (term, whole life, universal life)
• Critical illness insurance
• Disability insurance
• Health and dental insurance
• Long-term care insurance
• Travel insurance (in some provinces)

Regulatory Requirements

Each province and territory in Canada regulates life and A&S insurance licensing. The general process includes:

1. Completing an approved pre-licensing course (e.g., Life License Qualification Program – HLLQP).
2. Passing a provincial licensing exam.
3. Undergoing a background check.
4. Applying for a license through the provincial regulatory body.

Continuing Education (CE) Requirements

To maintain their license, Life and A&S Insurance Licensees must complete continuing education (CE) credits as required by their respective province. The CE requirements vary, but typically include:

• A set number of CE hours every renewal period (e.g., 30 hours every two years in Ontario, with at least 10 hours dedicated to A&S if selling A&S insurance).
• Ethics and compliance-related CE courses.
• Courses approved by provincial insurance councils.

General Insurance License

A General Insurance License, also known as a Property & Casualty (P&C) License, enables an individual to sell insurance that covers property, liability, and casualty risks. This includes policies for personal and commercial clients.

Types of Insurance Covered

• Auto insurance
• Home insurance
• Commercial property insurance
• Liability insurance
• Business interruption insurance
• Marine and aviation insurance
• Surety bonds

Regulatory Requirements

Like life and A&S insurance, general insurance is regulated at the provincial level, and licensing requirements differ across Canada. The general process involves:

1. Completing a pre-licensing course (e.g., Fundamentals of Insurance or CAIB Level 1 in some provinces).
2. Passing the provincial licensing exam.
3. Applying for a license through the relevant insurance regulator.
4. Gaining employment with a licensed insurance brokerage (in most cases).

Continuing Education (CE) Requirements

General insurance licensees must also complete CE credits to renew their licenses. CE requirements differ by province, but common expectations include:

• 8 to 15 hours of CE credits per year (e.g., in Ontario, licensees must complete 8 to 15 hours annually depending on their license level).
• Courses must be relevant to general insurance and regulatory compliance.
• Ethics and professional development courses may be mandatory.

Key Differences Between Life/A&S and General Insurance Licensees

Conclusion

Both Life/A&S and General Insurance Licenses play essential roles in the Canadian insurance industry, yet they cater to different client needs. Life/A&S insurance focuses on financial security and health-related protection, whereas General Insurance covers tangible assets and liability risks. Licensing requirements, including education, exams, and continuing education, differ between these fields, ensuring that professionals remain knowledgeable and compliant. Choosing between these two paths depends on an individual’s interests and career aspirations in the insurance sector.!

Looking for A&S accredited CE Courses?

Our continuing education courses for Accident and Sickness Credits are available to all ILScorp Life/A&S CE Subscription Subscribers. We currently have over 35 course titles accredited in numerous provinces. See the complete list below and search for any of these course titles when logged into your e-learning account.

TABLE OF COURSE TITLES AND ALL ACCREDITATION INFO

Life/A&S CE Subscription

With annual losses due to hail damage amounting to over $1 billion and climate change contributing to the frequency and intensity of such events, it is time to pay attention to this problem. Insurance professionals should possess a basic understanding of how hail forms, the factors that influence the size and speed of hailstones, as well as the regions and seasons in which homeowners are most likely to experience hail damage.  They should also be knowledgeable about the factors of construction design and materials that may prevent or mitigate damage due to hail.

Purpose

By the end of this course, participants will have a clear understanding why hail damage is of great concern to the insurance industry.  The goal is for insurance professionals to be able to apply this knowledge in their respective roles to provide advice or recommendations to clients, stakeholders, and colleagues. 

Course Content

This course covers the following topics:

The Institute for Catastrophic Loss Reduction

Understanding Hail Damage

How Hail is Formed

Regions and Seasons of Hailstorms

Recommendations for Damage Mitigation and Prevention

Research and Standards of Roofing Materials

Websites to Investigate

Protecting Homes and Vehicles

Quiz

This course is now available to all ILScorp General or Adjuster CE Subscribers.

Included as part of the ILScorp General CE Subscription.
Included as part of the ILScorp Adjuster CE Subscription.

Credit Hours: 1

Credit Type: General/Adjuster – Technical and RIBO – Technical

Credit #: AIC#64636; MB41993

Accrediting Provinces:

Course Learning Objectives

Successful participants in this course will:

• Be aware of the mission and mandate of the Institute for Catastrophic Loss Reduction
• Be knowledgeable about the mounting problem of hail-related damage in Canada
• Be familiar with statistics relating to hail damage
• Know about Canada’s first National Adaption Strategy
• Be able to discuss the costs to insurers resulting from hail damage
• Be knowledgeable about the geographic regions most affected by hail damage
• Understand the process and the contributing factors to hail formation
• Be aware of the factors responsible for a better understanding of decreasing the potential damage caused by hail
• Be able to point out factors of design and available materials which decrease impact of hail damage on roofing, windows, and siding
• Know the purpose and usefulness of Canadian Asphalt Shingle Manufacturers’ Association (CASMA) 
• Recognize the importance of talking with homeowners to provide them with an  understanding of  what types of damage are covered under their policy.