TORONTO, Oct. 15, 2015 /CNW/ - Today, the Ontario Trial Lawyers Association (OTLA) released an updated self-funded "study" about auto insurance companies and rates. According to Ralph Palumbo, IBC spokesman, "This trial lawyer study isn't fair, it isn't serious, and it isn't factual."
The authors provide Ontario consumers with a sliver of the story: In their "findings" on profitability - they omit 25% of the province's auto insurers. Conveniently, it's the 25% of the market that have lost money. They also fail to mention the contingency fees that personal injury lawyers charge accident victims – which are as high as 40%.
"This trial lawyers' study is misleading Ontario consumers. It is not an academic study. There are a number of factors contributing to the cost of auto insurance, including not only distracted driving and fraud – but also the exorbitant fees that trial lawyers are themselves demanding of innocent accident victims," said Ralph Palumbo, a spokesman for Insurance Bureau of Canada (IBC).
"We are committed to bringing down the cost of premiums for Ontario's drivers," Palumbo added. "The insurance industry is working closely with the Ontario government to implement their latest reforms, which will help return more money to Ontario consumers. And we'll continue to look for more ways to ensure that Ontarians have affordable auto insurance."
About Insurance Bureau of Canada
Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.
P&C insurance touches the lives of nearly every Canadian and plays a critical role in keeping businesses safe and the Canadian economy strong. It employs more than 118,000 Canadians, pays $6.7 billion in taxes and has a total premium base of $48 billion.
SOURCE Insurance Bureau of Canada
For further information: Steve Kee, Director, Media & Digital Communications, 416-362-2031 ext. 4387, 416-841-5669, [email protected]