November 4, 2010 by Canadian Underwriter
Insurance Brokers Association of Ontario (IBAO) is applauding a private members bill that calls for an outright ban on the use of credit scoring in personal lines insurance in Ontario.
Liberal MPP Mike Colle introduced private member’s Bill 130: The Homeowners Insurance Credit Scoring Ban Act, 2010, and it passed first reading. The bill calls for the ban of the use of credit scoring in personal property insurance.
Colle helped ban the use of credit scoring in auto insurance when he was a parliamentary assistant to the minister of finance in 2005.
“We are thrilled that a member of the Ontario government has stepped forward and introduced this bill,” said IBAO CEO Randy Carroll. “We are extremely pleased that our collective voice was heard and that action was taken.”
The introduction of the bill comes on the heels of IBAO’s ‘Lobby Day,’ which was held on Nov. 1 at Queen’s Park.
NDP consumer protection critic Peter Kormos raised the issue in the legislative on Nov. 3. “If the use of credit scores for determining premiums is unfair for drivers, why isn’t it unfair for homeowners?” he asked.
“Going forward, we’ll continue to monitor the use of credit scores in other areas of insurance, such as personal property,” Ontario Finance Minister Dwight Duncan said. “FSCO is engaged in discussions with other insurance regulators across Canada and it’s important, just like our five-year review, that we maintain a balanced approach.”
Duncan continued: “In terms of implementation, we have to be very careful how we do it. We have to make sure we get it right. That’s why we’re working with other jurisdictions, because we’re not the sole regulator in this matter.”