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The industry supports the reform of ontario’s auto insurance


Andrea Lubeck

12 April 2019 13:30

Photo : Freepik

In his first budget, the government of Doug Ford promises to reform the Ontario auto insurance. The objective of the plan, entitled Priority to drivers, is to ” reduce costs, enhance consumer choice and increase competition in this market “.

The government does not fail to criticize harshly the actions of previous governments in automobile insurance. “Over the past 30 years, the auto insurance system in Ontario has been the subject of reforms disparate companies by various governments and which have all proved to be ineffective. Each reform was accompanied by a temporary decrease of rates which, invariably, rose again, ” writes the minister of Finance, Victor Fedeli.

Tackle fraud

The budget proposes to ” tackle fraud “, since it “costs to consumers of the province billions of dollars per year,” said Mr. Fedeli. The government plans to work with the Office of the fight against serious fraud in order to establish ” an anti-fraud strategy and modernize the delivery of benefits to health care.”

It thus proposes a series of steps to get there, which to review the system of licensing of health service providers, to better analyze data to detect fraud and establish a process of claim online.

Proof of insurance electronic arrives

The second part of the plan Priority for drivers is dedicated to the “accessibility and affordability” of auto insurance products. The government proposes to allow proof of insurance automobile electronics (pink card) and the simplification of the forms and car insurance policies.

The ministry of Finance also suggests to give insurers the flexibility to offer drivers more choices, discounts and coverage to make the cost of their policy more affordable “. It shows for example that the insurers could have access to credit history or that they have recourse to a network prime mechanical shops or health care providers to reduce their premiums.

The government is also planning to relax the regulations in order to increase the competition on the market by allowing new players to enter it.

The industry is looking forward

The insurance Bureau of Canada (IBC) and Aviva Canada have both applauded the measures contained in the budget relating to automobile insurance.

“The government has given priority to the motorists in ontario with this budget. Today’s announcement has the main objective to enable persons injured in a motor vehicle collision to recover, supports Kim Donaldson, vice-president of the insurance Bureau of Canada, Ontario. Automobile insurance is complex, but the proposed amendments are clearly intended to simplify the claims process for consumers. “

“The plan of the minister Fedeli addresses these problems by introducing consumer choice, competition and innovation in automobile insurance, as well as initiatives to reduce fraud. By reducing the administrative formalities and the cost of the system, the government’s plan will enable insurers to offer products that meet the specific needs of each consumer at more affordable prices, ” says Phil Gibson, director of personal insurance at Aviva Canada.

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