Quebec’s failed auto insurance digital shift could cost $500M, inquiry hears
MONTREAL - A public inquiry examining a failed digital shift by Quebec’s automobile insurance board heard Monday it could end up costing the province nearly half a billion dollars more than initially planned.
MONTREAL - A public inquiry examining a failed digital shift by Quebec’s automobile insurance board heard Monday it could end up costing the province nearly half a billion dollars more than initially planned.
Alain Fortin, Quebec’s interim auditor general, testified that cost overruns could mean the final tally for the so-called SAAQclic project will come in at $1.1 billion by 2027, nearly $500 million more than was budgeted.
The project was expected to cost $638 million over 10 years when launched in 2017. Fortin noted that the board no longer tracks operating costs, and the assumption by the auditor was that operating costs would be at least what was initially budgeted in 2017.
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The projected total includes costs for services that are already implemented and others that haven’t been completed. However, several phases are on hold without firm deadlines for completion.
“The $1.1 billion includes future costs, actual costs, all costs combined. It could be more .... If they want to get what they wanted at the beginning, it could be more,” Mr. Fortin told the inquiry.
Earlier this month, Premier François Legault questioned the auditor general’s calculations at the national assembly, arguing that “the cost of the program” and “the cost of maintenance” should be calculated separately.
Fortin insisted that it was necessary to “compare apples with apples.” He noted that the board no longer tracks operating costs and the auditor general report estimated the operation cost will come to at least what was initially budgeted in 2017.
The digital transformation was supposed to provide a one-stop platform for renewing licences, scheduling driving tests and performing other tasks without needing an in-person meeting.
It ended up creating headaches for the provincial government in 2023 as frustrated citizens were stuck waiting in massive lineups at branches attempting to get services that should have been available online.
Some of the problems were known in 2022 before the system became operational, but management claimed the system was proceeding according to plan.
“In fact, the implementation of the new computer system caused significant problems and has not yet generated the expected benefits,” the auditor general wrote. “Two years after its implementation, problems persist.”
The inquiry, headed by Denis Gallant, a Montreal municipal court judge, must submit its report by Sept. 30.
After the auditor’s report, Éric Caire was forced to resign as minister of cybersecurity and digital technology. Legault’s government established the public inquiry to shed light on what went wrong with the implementation of the software for the board.
This report by The Canadian Press was first published April 28, 2025.
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