TORONTO, Feb. 28, 2013 /CNW/ - Insurance CEOs are meeting tomorrow with
NDP Leader Andrea Horwath to secure support for the industry's plan to
reduce auto insurance rates in Ontario. "We asked for this meeting in
December. We are happy that we finally have the opportunity to talk
about our plan to reduce auto insurance costs," said Ralph Palumbo,
Vice-President, Ontario, Insurance Bureau of Canada. "We know high
premiums are a real problem and we need to work together on a real
In 2010, government implemented reforms to the auto insurance system
aimed at reducing fraud and controlling costs. The industry is
starting to see the results of these reforms and the results have been
lower premiums. In fact, the provincial regulator recently approved
auto insurance rate decreases for eight firms, beginning in 2013.
"We need to finish the job," said Palumbo. "We want to work with
government and all political parties to bring in more, much-needed
reforms. The key to bringing down premiums is bringing down costs in
Highlights of the industry's plan include:
Implementing the recommendations of the government's Anti-Fraud Task
Implementing a more effective and efficient mediation and arbitration
system at FSCO; and,
A new and clear definition of catastrophic impairment.
Palumbo concluded: "We look forward to a positive outcome from
tomorrow's meeting and hope that Ms. Horwath and the NDP will discuss
real solutions to how premiums can be lowered and ensure affordable and
available insurance for all of us."
The average auto insurance benefits claim payout in Ontario is $28,978,
as compared to Alberta where it is $3,568.
Ontario auto insurers lost nearly $1 billion a year between 2008 and
2010, including a loss of $1.7 billion in 2010. The current situation
in Ontario auto must be viewed in this context.
In Ontario, home, car and business insurers provide jobs for 63,000
Insurers paid $14.5 billion in claims from car, home and business
insurance to help people recover from accidents and other disasters in
Ontario in 2011.
Insurers paid more than $2.2 billion in taxes to the provincial
government in 2011, including a health care levy to pay for the medical
needs of accident victims.
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.
If you require more information, IBC spokespeople are available to
discuss the details in this media release.
SOURCE: INSURANCE BUREAU OF CANADA
For further information:
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Director, Media Relations
Insurance Bureau of Canada
416-362-2031 ext. 4387