The Ontario government Friday set out its plans for reducing auto insurance rates in the province by 15% over the next couple of years.
The Ministry of Finance says it intends to reduce rates by an average of 15% over the next two years, with more than half of that (8%) achieved by August 2014; and, it says it expects a report from the Financial Services Commission of Ontario (FSCO), scheduled for January 2014, to show a reduction of 3% to 5%.
It aims to deliver these reductions by continuing to crack down on fraud, including licensing health clinics that invoice auto insurance companies; making guidelines on accident benefits binding in order to reduce unexpected costs; and, providing the Superintendent of Financial Services with the authority to require insurers to re-file rates.
The government says that it will also explore other cost reduction initiatives, including provincial oversight of the towing industry and addressing collision repair practices. And, it pledges to “take further action as required and all necessary steps to achieve the 15% average rate reduction target.”
It also intends to have independent experts report on how quickly savings are passed on to consumers, and the effectiveness of the market in providing affordable premiums, “to ensure greater transparency and accountability.”
Additionally, it announced that former Superior Court judge, J. Douglas Cunningham, has been appointed to lead a review of the province’s auto insurance dispute resolution system and make recommendations on transforming the current system.
“The government has a practical plan to protect consumers and help save them money on auto insurance. We have worked hard to reduce costs in the system and we continue to take further action to help ensure that those savings are being passed on to consumers,” said Charles Sousa, Minister of Finance.