IBC says Ontario NDP's plan to reduce auto insurance rates "arbitrary"

Sharma

The IBC/Palumbo of all people is telling others not to use arbitrary numbers lol. The $1.6 billion in fraud is as arbitrary as it gets. They've been using that number for 30 years to justify their lobbying agenda. Wake up people, there is no choice out there. It's all an illusion. All the insurance companies and their execs are in bed together for one reason: to maintain their lifestyle. Competition is an illusion.

Posted February 11, 2013 10:31 PM

Don

The NDP really needs to look at how a business works in general. Ever since I was a teenager 40 years ago I was hearing this same message. And when the NDP mangaged to gain power in the early 1990's they didn't do what they said they were going to do about auto insurance in Ontario.

The government of Ontairo ( all parties) have had their chance to "fix" this policy. If Andrea Horwath wants to lower insurance premiums in Ontario she should concentrate on Health Care costs, safe driving habbits, safer highways, alternate transportation.

Hey Andrea, if there are fewer accidents there will be fewer injuries and guess what will happen next, the insurance companies will be able to lower the premiums to reflect the risk!

I have never voted NDP and doubt I ever will.

Posted February 6, 2013 08:40 AM

Robin

Profit should not be a dirty word because that is how commerce works. Everyone benefits. To say Insurers are only concerned about profits is totally inaccurate. Insurers are in a competitive enviroment and as such are focused on providing the best value for consumers whilst providing a reasonable ROI to shareholders who incidentally happen to be many institutional investors such as pension funds. Open competition is healthy for consumers because it is self regulating and provides choice.
The insurance industry is cyclical and ROI for insurers have been deteriorating over the past few years to the point now where premium increases are taking place in some segments. Ontario auto insurance had returned to profitability as a result of earlier reforms however there is always leakage as enterprising lawyers find ways around the intent of reforms. Consistency should be important to consumers and this cannot be achieved with political interference.
It is also wrong to assume if you take profit out by introducing Government Auto the consumer will see lower premiums. Surveys consistently indicate auto premiuums in BC for example are some of the highest in the country. Unfortunately under a left leaning Liberal Government the economy in Ontario has substantially deteriorated and actually makes some of the basket cases in Europe look good. Hopefully the voters in Ontario will not exasperate the problem by moving further left with NDP ideology.
I am not a resident of Ontario however do have business interests in Ontario and as such a vested interest in the financial well being of Canada. I am not employed by an insurer or a spokesperson for the insurance industry.

Posted February 5, 2013 12:54 PM

Nick

The fraud element has made the system toxic for lack of a better word . And although not an excuse, insurers have learned to put the blocks to even the most reasonable claims coming in. Insurers need to raise the bar – and academic arguments about fraud need to be followed up with criminal charges. Insurers learned to be comfortable settling fraud claims on the low end, and the Ontario legal system, it would appear, is not aggressive on white collar crime in the insurance sector. I ‘d say that you face more risk stealing a car stereo than you would orchestrating a massive insurance fraud ring.

Posted February 5, 2013 12:10 PM

dean

i guess Ms Horwath's auto premium went up this year :)

Posted February 5, 2013 09:43 AM