Insurance reforms will take time
Ontario insurance reforms are in the works by provincial officials, but the Insurance Bureau of Canada says it will take some time before policyholders see the fruits of those efforts.
"The tangible benefits of Ontario's auto insurance reforms will take some time before they are realized by consumers," said Ralph Palumbo, Vice-President of IBC Ontario. Palumbo went on to say that any premium increases policyholders have observed are in line with the rate of inflation.
This assertion contrasts with recent claims suggesting auto insurance rates in Ontario have risen dramatically, which the IBC considers inaccurate and uncorroborated. Using figures from the General Insurance Statistical Agency, IBC states premiums have risen 2.5 percent, which follows the inflation rate. Data gathered from the Financial Services Commission of Ontario suggests auto insurance rate hikes have been even lower than GISA's numbers, showing an increase of just 1.7 percent.
This information may prove useful to employers as they determine which group auto insurance policy to choose.