TORONTO, Feb. 4, 2013 /CNW/ - Today Ontario NDP Leader Andrea Horwath
announced a list of priorities she has for new Premier Kathleen
Wynne. One of these recommendations would give Financial Services
Commission of Ontario (FSCO) a mandate to reduce auto insurance rates
by 15 per cent.
Responding to today's news, Insurance Bureau of Canada (IBC) says band
aid solutions may score political points but for the long term all
stakeholders need to continue to push for needed reforms and fight
fraud. Auto insurance fraud in Ontario costs as much as $1.6 billion a
year and drives up costs for all Ontario drivers, who currently pay the
highest auto insurance premiums in the country.
"It's about time they stand up for Ontarians and say fraud must end,"
said Ralph Palumbo, Vice President, Ontario, IBC. "If the NDP was
interested in saving consumers money they would be supporting
government reforms and the Anti-Fraud Task Force's recommendations, not
throwing around arbitrary numbers."
He added, "the key to lower premiums is lowering costs and that is why
we support the need for auto insurance reform in bodily injury claims;
the mediation and arbitration system; and a clear and science-based
definition of catastrophic impairment. We have acknowledged that auto
insurance rates are too high in Ontario. We know consumers want an
affordable system that works and we have been listening. We continue to
work with government and Ontarians to implement reforms and we urge the
NDP to work with us."
The Ontario auto insurance industry lost an average of nearly a billion
dollars a year between 2008 and 2010 on the auto product, including a
$1.7 billion loss in 2010. Of the $233.2 million earned in profits in
2011, there were more than $10.3 billion in written premiums. Most of
the money collected is returned back to claimants. "I find it hard to
believe this constitutes soaring profits," added Palumbo.
"Every step we all take to reduce fraud and every measure that is
implemented that will get at the root cause of unnecessary and
unwarranted costs will benefit every driver in this province," added
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 90% of the property and casualty (P&C)
insurance market in Canada. The P&C insurance industry employs over
115,000 Canadians, pays more than $7 billion in taxes to the federal,
provincial and municipal governments, and has a total premium base of
To view media releases and information, visit the media section of IBC's
website at www.ibc.ca and for IBC on Twitter follow @insurancebureau.
SOURCE: INSURANCE BUREAU OF CANADA
For further information:
If you require more information, IBC spokespeople are available to discuss the details in this media release.
To schedule an interview, please contact:
Media Relations Officer
Insurance Bureau of Canada
416-362-2031 ext. 4312