Industry Supports Ontario Auto Reforms

Insurers and brokers in Ontario support proposed changes to Ontario’s auto insurance system, saying the McGuinty government’s plan puts consumers first.

That plan—unveiled November 2—earned high marks from both the Insurance Bureau of Canada (IBC) and the Insurance Brokers Association of Ontario (IBAO) for its emphasis on cost and consumer protection.

In a statement following yesterday’s government announcement, IBC president and CEO Don Forgeron praised the plan for balancing the need to keep premiums down while keeping benefits intact. “We are pleased that the government is taking the steps necessary to create a better auto insurance system for Ontarians,” he said.

The province’s brokers also approved of the plan’s focus on rates and the element of choice—consumers can select the level of benefits they want under the reforms—but singled out its focus on consumer protection for particular praise, and added advice:

 “IBAO is very pleased that the Government has taken our advice and will ban objectionable quoting practices related to credit scoring in auto insurance outright,” the association notes in a November 2 statement. 

But the association is pushing for the reforms to go further.  “In order to put the interests of Ontario’s insurance consumers first, a ban on credit rating should, in addition to auto insurance, include personal line property and casualty insurance products,” the association’s CEO, Randy Carroll, said in the statement. “We must protect consumers for all their insurance needs, not just auto insurance.”

Both groups pledged to work with government to implement the system changes, which are expected to take effect in 2010.

This story was originally published by Canadian Insurance Top Broker.