Ontario reforms are stabilizing the auto insurance product: IBC

Ontario auto insurance reforms implemented last year have led to stability in the auto product, the Insurance Bureau of Canada says.
“Recent claims that auto insurance rates may be rising dramatically are neither accurate nor supportable,” IBC says. “Ontario’s recent auto insurance reforms are addressing cost pressures and working to stabilize the province’s auto insurance system.”
A press release issued by IBC cites data provided by the General Insurance Statistical Agency (GISA) and the Financial Services Commission of Ontario (FSCO).
The data show that Ontario auto insurance rates have been trending at the rate of inflation. The target range set by the Bank of Canada to contain inflation ranges from 1 to 3%.
“Based on GISA data, monthly average premiums have increased by 2.5% from May 2010 to May 2011,” IBC says. “FSCO’s data for the first quarter of 2011 shows an average increase of 1.78%.”
“Auto insurance premiums that are renewed today can reflect rates that were requested up to one year ago,” said Ralph Palumbo, vice president of IBC’s Ontario region.
“The tangible benefits of Ontario’s auto insurance reforms will take some time before they are realized by consumers. The good news however, is that we are already seeing that premium increases when they occur, are keeping pace with the rate of inflation.”