TORONTO, May 2, 2013 /CNW/ - Today, Ontario's Minister of Finance, the
Hon. Charles Sousa, introduced the 2013 Ontario Budget at Queen's Park
promising to lower auto insurance premiums by 15% on average over time
for Ontario drivers.
The Insurance Brokers Association of Ontario (IBAO) is encouraged that
the government intends to implement key measures of the Auto Insurance
Anti-Fraud Task Force as a central part of its plan to lower auto
"While the proposed reforms are welcome, we are very concerned that
consumer expectations for a 15% reduction will be very high," said IBAO
CEO Randy Carroll. "It's important to understand that the reforms
underlying the promised reductions will take time and must be done
responsibly. This will require the combined effort of the government,
the opposition and the industry. We do not want to set a false
expectation for consumers."
The targeted reduction is tied to reforms and cost reductions related to
combating fraud that will require the passage of legislation. Without
that legislation any potential decrease will be delayed.
"The affordability of auto insurance for our customers is of prime
concern to the IBAO," added Carroll. "As an Association we have been
urging the government to deal with the fraud problem and we are glad to
see that they intend to do so. The challenge now is to get the needed
legislation passed as soon as possible. The future of auto insurance
rates for Ontarians now lies with the Legislature."
The Anti-Fraud Task Force report estimates that fraud is costing Ontario
drivers up to $1.6 Billion per year. The key recommendations of the
report include health clinic regulation, tow truck regulation and
expansion of the Financial Services Commission of Ontario's (FSCO)
investigative and enforcement authority. Today's announcement commits
to regulating health clinics, increasing FSCO's authority and
compelling insurers to refile for lower rates once the reforms are
The Insurance Brokers Association of Ontario (IBAO) is a 'not for
profit' association that represents and serves the interests of over
12,000 independent Property & Casualty Insurance Brokers in the
Province of Ontario. For information about IBAO, visit www.ibao.org or www.ibao.org/news to receive timely news and information updates. You can also follow
IBAO on Twitter or join the IBAO Facebook Fan Page.
SOURCE: Insurance Brokers Association of Ontario (IBAO)
For further information:
For more information or for interview opportunities, please contact:
Emily Reid, IBAO Public Relations
Telephone: 613-796-4708, 613-233-8906