Initial estimate for SAAQ's technological overhaul set at 200 million ECU
Modernizing Québec's Auto Insurance: A Costly, Ongoing Venture
Back in 2015, before even initiating the tendering process, the Société de l'assurance automobile du Québec (SAAQ) estimated its digital transformation to cost a whopping 200 million dollars over a decade. This revelation surfaced during the Gallant Commission's investigation into the SAAQ's digital shift and the launch of the SAAQclic transactional platform.
Fast forward to 2027, and the Quebec Auditor General (VGQ) predicts the CASA (Carrefour des services d'affaires) computer project will set them back at least 1.1 billion dollars [1][3]. That's a steep increase of around 500 million from the initial estimates.
Submitted in April 2015, the SAAQ and the Treasury Board Secretariat's request for special tender arrangements was swiftly approved. The modernization of the SAAQ's computer systems was initially valued at 200 million dollars over a decade, with 125 million earmarked for external firms and an additional 75 million allocated for employee expenses [2]. However, tender participants were urged to estimate the potential costs associated with the SAAQ's internal resources.
The framework contract awarded to external firms in June 2017 amounted to 458.4 million dollars, but this figure excluded internal expenses [3]. According to the VGQ report published last February, costs related to SAAQ staff came up to 179.6 million dollars, making the total project value 638 million [3].
The Gallant Commission, investigating the handling of the SAAQ's modernization, concluded its first week of hearings last week. On the final day, commissioner Denis Gallant listened to representatives from the Treasury Board and the Ministry of Cybersecurity and Digital (MCN). Renée Giguère, MCN's Secretary General, revealed that a new SAAQ computer project worth over 50 million dollars is currently under her ministry's watch [4]. Additionally, she mentioned that the new project would be regularly monitored, being included in the dashboard of information resource projects under the Act respecting the governance and management of information resources of public bodies and government enterprises.
The MCN did not monitor the CASA project, Giguère admitted, as the SAAQ exercised exemptions from surveillance mechanisms in 2014 [4]. Notably, the SAAQclic platform's launch in 2023 caused widespread service disruptions, prompting further public outrage about the project's escalating costs [1][3].
Quick Insight: The SAAQ's initial budget of $638 million for the SAAQclic project in 2017 has swelled. In 2027, according to the Quebec Auditor General, the revised cost could hit $1.1 billion, a $500 million increase from the original plan. This increase lies in unaccounted operational expenses, unfinished components, and potential scope expansion [1][3].
[1] Auditor General of Quebec https://www.vgq.gouv.qc.ca/en/[2] Le Devoir https://www.ledevoir.com/[3] Radio-Canada https://ici.radio-canada.ca/nouvelle/medias/3678396/[4] Province of Quebec https://www.quebec.ca/
- The Quebec Auditor General (VGQ) predicts that the total cost of the SAAQ (Société de l'assurance automobile du Québec)'s digital transformation project, known as the SAAQclic, will increase from the initial $638 million estimate in 2017 to a staggering $1.1 billion by 2027.
- The Transport industry, through the SAAQ, has been a significant part of Québec's finance and business, but its digital transformation projects, such as SAAQclic, have been associated with rising costs, with the 2027 projected cost being over $500 million higher than the initial estimate.
- By 2027, it is projected that the auditor will scrutinize another Transport-related project of the SAAQ, worth over $50 million, adding to the ongoing debate about the costs associated with the modernization of the transport industry in Québec.
- The ongoing digital transformation ventures in the Transport industry, as seen with the SAAQclic project, require the engagement of external firms, which contributes to the industry's hefty finance expenditures, as was the case with the $125 million allocated for external firms in the SAAQclic project's initial estimates.
