The Insurance Bureau of Canada has endorsed the Ontario government’s announcement today of reforms to the auto insurance system in the province.
“The reform package includes detailed regulations to implement legislation passed at the end of last year, as well as other plans designed to control escalating claim costs and improve the availability of auto insurance,” said the IBC. “Many of the measures address the sharp rise in health care costs paid by auto insurers.” Further reform proposals are still being worked on and are expected to be announced at the upcoming Premiers’ Conference.
“Today’s announcement sends a very positive signal to insurers and consumers alike that the government is serious about addressing the high costs in the auto insurance system in Ontario,” stated Mark Yakabuski, IBC’s VP, Ontario Region. “The changes coming into effect today are an important first step in controlling costs and stabilizing rates for Ontario’s insurance consumers.
“If the government implements further comprehensive changes to control rising health care expenses and the cost of lawsuits, as the government’s White Paper is expected to propose, it is possible that consumers could see a significant reduction in average premiums in the months to come,” Yakabuski continued.
He added that “While controlling costs, today’s reforms to the health care component of auto insurance will promote better rehabilitation for those who suffer whiplash injuries and ensure they get quicker access to proper health care,” and indicated that, “The reforms announced today reflect extensive discussions among the insurance industry, health care providers and other groups to find solutions to the challenges facing the auto insurance system.”
Yakabuski said the IBC strongly supports the changes and would “work closely with the government to ensure the implementation of the second phase of reforms once the government’s White Paper is tabled. ” He congratulated MPP’s Ted Chudleigh, Rob Sampson and Wayne Wettlaufer, who led consultations with numerous groups across the province, for their work in developing the government’s reform package.