Quebec Premier François Legault has ordered an independent public inquiry into cost overruns related to the online platform of the province’s auto insurance board, the Société de l’assurance automobile du Québec (SAAQ).
Known as SAAQclic, the online service platform was meant to modernize transactions and reduce the need for in-person visits for processes such as licence renewals, vehicle registrations, and appointment bookings. Instead, multiple website flaws resulted in long line-ups outside SAAQ offices.
A report last month from Quebec’s auditor general found:
- The costs of the program increased by nearly $500 million to more than $1.1 billion, and these cost overruns were not communicated to decision-makers.
- Program management didn’t conduct the necessary tests prior to the implementation of the new platform in February 2023. As of Jan. 17, 2023, nearly 20% of final integrated tests had not been completed.
- The new system has not yet generated the expected benefits. Significant problems remain, particularly regarding automated bank withdrawals, which can stop working for no good reason. As well, online services offered on SAAQclic are used by fewer drivers than the old online services
- Program management stated development was proceeding as planned, but delays were accumulating and quality problems were noticeable. Problems weren’t adequately communicated to SAAQ, including that not all tests were completed or expected to be completed before the service launch date.
In a post on social media platform X Sunday, Legault said he thought about the SAAQ “fiasco” all weekend and understands the public’s anger over the project.
“The SAAQclic project had unfortunate consequences for thousands of Quebecers,” Legault says in a translation of the French-language post. “I remember all those people who had to wait in line for hours just to get a temporary licence, a registration.”
Legault says he ordered Quebec’s Secretary General to launch an independent public inquiry as soon as possible. “How did we manage to launch such a poorly prepared project?” he asks. “We must understand why and how it happened so as not to repeat the same mistakes in the future.”
SAAQ response
In a Feb. 20 press release following the release of the auditor general’s report, SAAQ says it “considers it should have postponed the deployment” of the online platform. Among other changes, SAAQ says it has set up a new approach to planning and prioritizing IT work. A committee has also been established to identify and monitor risks.
Quebec’s minister of cybersecurity and digital technology, Éric Caire, resigned and was replaced last week. News reports alleged Caire helped SAAQ hide the rising cost from the public, according to The Canadian Press. Caire denied the allegations, saying he had been kept in the dark about the cost overruns.
Quebec’s government oversight body, l’Autorité des marchés publics (AMP), says in a statement it’s reviewing SAAQ’s contractual processes related to SAAQclic, as well as those related to new IT contracts at the auto insurance board. It has the power to trace the entire chain of events related to the awarding and integrity of SAAQ contracts, Legault adds.
If, after the public and AMP investigations, the government “must act and sanction those responsible, we will do so,” Legault says.
SAAQclic is not the first insurance-related tech project in Canada that faced cost overruns. In 2019, Manitoba Public Insurance (MPI) announced a project to modernize its legacy system and improve its delivery systems for personal and commercial auto insurance, physical damage claims, and auto licensing and registration.
Initially, the budget for Project Nova was $106 million. Spending then escalated to between $257 million and $290 million as of 2022, Canadian Underwriter reported in May 2023. In its 2023 rate filing, MPI requested additional staff related to work on Project Nova.
Following a government review of the project, former MPI CEO Eric Habelin was let go and replaced by an interim CEO. CBC reported in January 2025 the project was restarted after it was paused last year “to get a better understanding of how to deliver it.”
Feature image: People lineup at an SAAQ outlet in Laval, Monday, March 6, 2023. Multiple flaws in an upgrade of the Quebec motor vehicle agency’s website has resulted in lengthy delays for licence renewals, registrations and vehicle sales. THE CANADIAN PRESS/Ryan Remiorz
