Currently, not a day goes by without distressing news from the auto sector in Ontario and, of course, further afield. Correspondingly, the auto insurance industry in Ontario is experiencing its own set of financial woes. Recent financial results indicate that some serious reforms must be considered in order for the industry to remain viable. Minor injury caps have been targeted by insurers as sections of the system that require change, but of course this raises considerable controversy outside the industry. Four court challenges to minor injury caps are now in play in Ontario. Similar cases are being conducted in Alberta, Nova Scotia and New Brunswick. To add to their problems, a proposed Ontario auto insurance reform package hasn’t been wholeheartedly embraced by industry members.
A five-year review of auto insurance is about to conclude. The Insurance Bureau of Canada is currently running a government relations and communications strategy designed to point out serious problems facing auto insurers in Ontario while presenting what they believe are workable solutions. At the recent IBC annual general meeting, the president and CEO of IBC, Don Forgeron, told delegates that the organization continually advocates cost-saving reforms that should result in a stable and affordable insurance system for provincial drivers. The National Auto Insurance Committee and the Ontario Auto Committee have played a major leadership role by supporting IBC in this endeavour.
