Insurers voice pleasure with new Ontario auto reforms

Insurers are coming out in favor of new reforms introduced in the Ontario legislature. The McGuinty Liberals had promised reforms after freezing rates shortly after taking office in October. The reforms mean that the rate freeze will end, but insurers will be required to file new, lower rates by January 23. But insurers say the reforms will help reduce claims costs, including capping fees charged by designated assessment centers (DACs) and tighter protocols on whiplash treatment programs. “Insurers are committed to filing new rates to take into account today’s announcement,” says Mark Yakabuski, Ontario region vice president for the Insurance Bureau of Canada (IBC). “Any savings generated by these measures will be passed on to consumers.”He adds that premium increases were directly related to rising claims costs related to health care and lawsuits. “Bringing these costs into line will help insurers give drivers a significant break in the months to come.”He says that the savings passed along to policyholders will vary based on driving record and other driver factors, and based on the individual financial position of companies. The Liberals had promised a 10% reduction in premiums.