Auto reforms appear to be making a difference: FSCO

Accident benefits costs in Metro Toronto and the Greater Toronto Area (GTA) have been identified as an area of concern, but ongoing efforts seem to be helping rein in costs.

The increase in accident benefit costs in the GTA dwarfed the provincial experience. Between 2006 and 2010, related costs in the GTA increased 169% compared with a provincial hike of 106%, said Phillip Howell, CEO and superintendent of financial services at the Financial Services Commission of Ontario, speaking at the CIP Society Symposium 2012 in Toronto on Apr. 26.

The reason behind the dramatic increase in costs “is something that’s not widely understood,” Howell told attendees to a session on fraud. “It’s not that people are getting injured differently in different parts of the province.”

From 2004 to 2009, Howell said the biggest increase in accident benefit costs related to assessments and examinations, perhaps an early indicator that fraudulent activity is at play. Assessments and examinations increased four times while treatment costs almost doubled to about $1 billion, he said. “That definitely woke the government up.”

Efforts have been made to snuff out fraud, including the 2010 auto reforms, the reduction in the standard medical coverage and the cap on minor injuries. “It’s still a little early to quantify accurately what impact the reforms have had,” Howell said. “But, certainly, anecdotally and early evidence suggests it is making a difference.”