TORONTO, May 29, 2013 /CNW/ - The New Democratic Party's deliberate
attempts to mislead consumers serves only to deflect attention from the
real issue, which is reforming Ontario's auto insurance system.
"It is too simplistic to raise a couple of examples of rate increases
without knowing the entire story," says Ralph Palumbo, VP of IBC for
Ontario. "We categorically reject any suggestion that rate increases
represent an attempt to raise premiums in anticipation of proposed rate
decreases as part of the Liberal government's sensible cost reduction
strategy. The reality is that any current rate increase is based on
rate filings made by insurers and approved by the provincial regulator
well before the NDP demanded an arbitrary rate cut. To suggest
otherwise is irresponsible."
Auto insurance rates are approved quarterly by the Financial Services
Commission of Ontario. Rates approved during the first quarter of 2013
declined on average by 0.03%, based on the entire market.
"An individual's rates may change for a number of reasons: if they have
moved, bought a new car or had a change in driving record", said Mr.
Palumbo. "This is why we ask insurance representatives to work closely
with consumers to help them better understand their policy, as well as
any change in rates."
To help lower rates, the 2013 Ontario budget proposes a strategy that
targets auto insurance fraud and other high costs in the system.
"The government has signaled its commitment to reforming auto
insurance." says Mr. Palumbo. "If the NDP is truly serious about
lowering rates, they should work on implementing these reforms, instead
of maligning the 63,000 men and women who work hard to provide
Ontarians with peace of mind."
IBC continues to work with government, consumers, and all other
stakeholders to develop workable solutions to the problems plaguing the
current auto insurance product.
About Insurance Bureau of Canada
Insurance Bureau of Canada is the national industry association
representing Canada's private home, car and business insurers. Its
member companies represent approximately 90% of the private property
and casualty insurance market in Canada. The P&C insurance industry
employs 118,600 Canadians, pays more than $7 billion in taxes to the
federal, provincial and municipal governments, and has a total premium
base of $46 billion.
To view media releases and other information, visit the media section of
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If you require more information, IBC spokespeople are available to
discuss the details in this media release.
SOURCE: INSURANCE BUREAU OF CANADA
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