Quebec's SAAQ Under Fire: Calls to Scrap Public Auto Insurance Model
A comprehensive 586-page report from Commissioner Denis Gallant has exposed significant issues within Quebec's Société de l'assurance automobile du Québec (SAAQ), the province's public auto-insurance board. The document, released this week after extensive hearings, includes 26 recommendations but fails to address what critics call a fundamental problem: the very structure of Quebec's public insurance system.
The SAAQclic Debacle
The Gallant Commission's investigation revealed that senior SAAQ bureaucrats concealed approximately half a billion dollars in cost overruns related to the SAAQclic digital transformation project over nearly a decade. This massive financial oversight occurred within an organization where accountability appears diffuse and projects rarely meet budgetary or timeline expectations.
"Spending other people's money is much easier when the consequences are limited—if not simply inexistent," the report notes, highlighting a culture within Quebec's provincial public service that enabled these failures.
Adding to concerns, Article 16 of the Act respecting the Société de l'assurance automobile du Québec provides legal protection for SAAQ employees and executives, shielding them from civil liability for actions taken "in good faith." This provision has raised questions about whether proper accountability mechanisms exist within the organization.
Recommendations and Blind Spots
Among the commission's 26 recommendations is a proposal to create a centralized public entity to coordinate all major government digital projects and strengthen internal expertise to reduce reliance on external IT firms. However, critics argue this approach merely adds another layer of bureaucracy to an already cumbersome system.
"The same administrative machinery that allowed hundreds of millions of dollars in overruns to be hidden for years should now be expected to fix itself?" the report questions, suggesting structural reform may be necessary rather than procedural adjustments.
The Private Sector Alternative
Quebec is one of only four Canadian provinces operating a public auto-insurance system, alongside Manitoba, Saskatchewan, and British Columbia. In other provinces, private insurers provide coverage for personal injuries and property damage, while licensing and registration services are often delivered through private or delegated outlets.
Recent data compiled by the Montreal Economic Institute reveals striking differences between Quebec's model and private alternatives. When comparing Quebec to Alberta, researchers found Quebecers pay up to 60 percent more for similar services. Additionally, Alberta offers significantly better accessibility with 218 service points across the province compared to Quebec's 134—amounting to 59 service points per million registered vehicles, nearly three times Quebec's availability.
Ongoing Problems and Market Discipline
The SAAQclic platform, launched with promises of modern, streamlined service, continues to frustrate users. More than 24,000 complaints were recorded in 2023 and 2024 following its rollout, indicating persistent implementation problems.
"In a private company, cost overruns, delays and implementation failures of this magnitude would almost certainly have been detected and addressed much sooner," the report emphasizes. "No corporation can afford to lose half a billion dollars on a technology project without serious internal repercussions."
This contrast highlights what analysts describe as the market discipline that imposes constraints on private entities but often appears absent in government operations.
Structural Questions Remain
While the Gallant Commission's report offers valuable recommendations on governance and oversight, it leaves untouched the broader structural question of whether Quebec should continue operating a monopoly auto insurer. Critics argue the current model delivers less value at higher costs compared to private alternatives available elsewhere in Canada.
"The SAAQ is rolling on square wheels," concludes the analysis. "The time has come to scrap it and send its outdated, opaque and inefficient model to the junkyard. Because in the end, Quebec drivers and taxpayers shouldn't just keep paying for a clunker."
The debate now centers on whether Quebec will implement the commission's recommendations or consider more fundamental reforms to its auto insurance system as pressure mounts for change.
