October 3, 2002 by Canadian Underwriter
Specialty insurer Kingsway General was the latest to present before the Ontario government’s Auto Insurance Review Committee (AIRC). President Bill Star says the company’s initiatives were well-received by the committee.
“I was very pleased with the reception that I received from the review committee on our suggested changes to the Auto Insurance System in Ontario”, says Star. “Insurance fraud is a major problem which is facing the insurance industry in Ontario. The prevalence of fraudulent and exaggerated claims is contributing a significant amount to the loss costs from the Ontario automobile product, which in turn is now translating into significant premium rate increases for policyholders in Ontario.”
His company recently suspended dealing with certain paralegals and clinics based on this situation, and he notes that the Financial Services Commission of Ontario has been informed of the company’s decision.
“We anticipate that these initiatives will help reduce our claim costs, and together with our recently announced rate increases, should return our Ontario automobile product to underwriting profitability by 2003.”