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 solution."
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 the system."
Highlights of the industry's plan include:
- Implementing the recommendations of the government's Anti-Fraud Task Force;
- 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 people.
- 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 $44 billion.
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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