TORONTO, March 27, 2013 /CNW/ - MPPs at Queen's Park are debating a
motion that calls for a 15% gradual reduction in auto insurance
rates. The Government has indicated it plans to support the motion,
and has also said it recognizes that reducing costs is the key to
reducing premiums. "We support any move that links key reforms to
meaningful premium reductions," said Ralph Palumbo, Vice-President,
Ontario, Insurance Bureau of Canada.
Palumbo added, "We know that auto insurance costs too much in Ontario.
This can only be achieved with a commitment to real reforms that
address costs and create a better system for drivers."
These reforms include the need to implement the recommendations of the
Ontario Anti-Fraud Task Force, clarify the definition of catastrophic
injury based on medical science, cut red tape to let insurers respond
more quickly to market forces and eliminate the waiting list for
mediation and arbitration cases. High legal fees and delays are a major
driver of insurance costs in Ontario.
Palumbo said: "We urge everyone to work with us to develop workable
solutions to the complex problems that plague the current auto
Finally, to help further clarify the issue around costs, IBC has
commissioned an actuarial study to look at the profit margin for
Ontario auto insurance in recent years, including 2012. "This is
important because of wild speculation recently in the marketplace,
perpetrated in part by the Ontario Trial Lawyers Association," said
Palumbo. "They've claimed the industry has made billions off the backs
of consumers and it's just not so. So we've asked an independent expert
to do an analysis. We expect the results of this review in a week."
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 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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