Stakes are high for auto insurance industry: IBC

The stakes are quite high for Canada’s auto insurance system — one of the most highly regulated industries in the world — to show signs of a financial recovery, says the Insurance Bureau of Canada (IBC).
The industry’s most recent financial results in the auto product have been described as “alarming” by some. Currently the industry is facing four court challenges to minor injury caps, as well as a proposed reform package in Ontario that the industry does not wholeheartedly endorse.
In Ontario, the first five-year review of auto insurance is nearly complete, according to Don Forgeron, president and CEO of Insurance Bureau of Canada.
“We are executing right now an impressive government relations and communications strategy that was developed last summer, with the goal of highlighting the serious problems facing Ontario auto and presenting workable solutions,” Forgeron told delegates at IBC’s annual general meeting on Apr. 28. “IBC, under the combined leadership of the Ontario Auto Committee and the National Auto Insurance Committee, continues to advocate cost-saving reforms designed to build a stable and affordable insurance system for Ontario drivers.”
Moving west to Alberta, a court ruling striking down the cap on soft tissue injuries has been appealed the Alberta government. A decision has not yet been filed.
In Nova Scotia, the constitutional validity of the minor injury cap was upheld, but the decision was appealed, Forgeron noted.
A court challenge to New Brunswick’s auto insurance cap is pending.
“Needless to say, in all four provinces facing cap challenges, IBC remains focused on pursuing coordinated government relations and communications strategies that raise awareness about the true purpose of minor injury caps,” Forgeron said.