The impact of large infrastructure projects on the London market
Canada is positioning itself as a global hub for battery manufacturing, backed by major government incentives and strategic partnerships with leading automakers (GM) and technology firms. These investments will accelerate electric vehicle (EV) production but also enable large-scale energy storage solutions that support critical infrastructure such as AI-driven data centres. This shift signals a profound transformation in Canada’s industrial landscape—creating new opportunities and risks for insurers. EV adoption is driving premium growth but also introducing challenges around repair costs and underwriting complexity.
For insurers in Canada and London, this offers an important opportunity to innovate: developing tailored products, leveraging data-driven risk models, and partnering with clients across the clean-energy and technology sectors to stay ahead of this rapidly evolving market.
Anticipated changes to the Rules of Civil Procedure in Ontario
The civil justice system has been in need of reform. In early April 2025, there was a release of Phase 2 of the Consultation Paper pertaining to the Civil Rules of Procedure (the Rules). The paper came as a surprise to many people, as the changes being proposed would drastically affect the way parties handle claims. The drive behind the changes is to make the legal justice system more accessible, cost-effective and expeditious. The civil justice system has been described as being so complex for litigants that more time is spent fighting the process, rather than focusing on the actual dispute.
As a result, the proposed changes to the Rules were intended to deal with the issues and make civil court proceedings more efficient, affordable, and accessible. It is important to understand what the Rules aim to achieve, as it will be imperative in how they will be interpreted and applied by the Court.
Growth in our Aboriginal practice
Aboriginal law litigation in Canada expanded significantly in 2025, driven by largescale treaty enforcement claims, developments in section 35 jurisprudence, and increasingly ambitious remedies sought by Indigenous nations. At the same time, courts began scrutinizing not just the merits of these claims, but the financial structures used to advance them.
In Nootchtai v. Nahwegahbow Corbiere Genoodmagejig Barristers and Solicitors, the Ontario Superior Court sent a clear message that uncapped contingency style fees tied to massive recoveries are vulnerable to judicial intervention, particularly where they resemble a “piece of the action” rather than compensation proportionate to risk and work performed. While the court emphatically praised the legal achievement in Restoule, it drew a sharp line against contingency arrangements that produce windfall outcomes in megafund cases – a line that is likely to reshape how Indigenous nations finance complex, long running litigation.
Looking ahead to 2026, the practical consequence of Nootchtai is likely to be an increased turn toward third party litigation financing and structured rights based funding, as traditional contingency models become less viable in large Aboriginal law cases. If law firms are constrained in their ability to assume risk through percentage based fees, that risk does not disappear – it shifts. Indigenous nations pursuing treaty, title, or governance claims will increasingly need external capital to fund legal fees, disbursements, and adverse cost exposure over many years of litigation.
This, in turn, will drive demand for specialized insurance products, including adverse costs coverage, funder backed indemnities, and professional liability arrangements tailored to Indigenous litigation realities. For the insurance industry, this represents a structural change rather than a momentary trend: as rights based claims continue to grow in scale and sophistication, insurers will be required to understand constitutional litigation timelines, public law remedies, and Indigenous governance frameworks. In that sense, Nootchtai may ultimately prove to be as influential in shaping the economics of Aboriginal law litigation as the courts have been in shaping its doctrine.
Alberta introduces no fault auto insurance regime
The Alberta government recently introduced a proposed no fault auto insurance scheme which is expected to be implemented in early 2027. The proposed no fault system will replace Alberta’s current tort-based system. The changes will eliminate the ability for motorists injured in motor vehicle accidents to commence court claims for injuries or income losses, except in very limited circumstances including where another motorist has been charged with a criminal offence. Under the proposed no fault system, motorists who sustain injuries or income losses will only be entitled to receive payments from their own insurers as compensation, regardless of a motorist’s fault for a motor vehicle accident. The compensation available to motorists will be determined by standardized regulations currently being developed by the Alberta government.
In addition to limits on amounts payable for injuries, the proposed no fault system will also implement standardized limits on income replacement benefits and reimbursement of reasonably incurred out-of-pocket expenses. At this stage, the regulations establishing the prescribed compensation amounts remain under development.
The proposed changes to Alberta’s auto insurance regime will create significant impacts for insurers. The Alberta government notably declined to create its own publicly operated insurer and is instead maintaining the ability for private insurers to write auto insurance policies in Alberta. Insurers issuing auto policies will now be required to assess their own insureds’ claims and compensate their own insureds in accordance with the legislation and regulations currently under development.
These changes may result in significantly reduced claims costs to insurers but will simultaneously create additional administrative expenses as insurers will be required to assess, manage and administer their own insureds’ claims.
We anticipate more details regarding the proposed no fault scheme will be finalized throughout 2026 as we approach the anticipated implementation of the no fault system in early 2027.
