Fightyourtickets.ca has been saying it for years now, private insurance companies in Ontario have been taking Ontarians for a costly drive for years now, with the support and assistance of the Ontario Provincial Government. Insurance have had their way with driver’s in Ontario and the government has not only provided tacid approval, they have relaxed laws to assist their goal of achieving ridiculous profit, while preaching austerity for everyone else.
See Auditor General Jim McCarter’s annual report relating to auto-insurance.
Ontario needs a better grip on an apparent contradiction behind rising auto insurance premiums: it has the highest prices and the lowest per capita death and injury rates of any province, says Auditor General Jim McCarter.
In the last 10 years, the number of people killed or injured in crashes is down 25 per cent — yet insurance costs are being driven higher by industry profits, accident fraudsters and hefty claims for medical treatment.
“The increasing cost of claims cannot be explained by common sense things . . . somebody’s got to get a handle on this,” McCarter urged after delivering his annual report Monday.
Motorists in Ontario pay high auto premiums because companies can submit rates for government approval that build in a 12 per cent profit, the $56,000 average cost of claims is five times that in other provinces, and accident benefits here are among the highest in the country, he explained.
But it’s been 15 years since the profit level went under the microscope and a review is needed given that benchmark returns in the bond market have dropped to 3 per cent now from 10 per cent then, McCarter said.
That 12 per cent return on equity “could be higher than appropriate,” he cautioned.
The Insurance Bureau of Canada said 12 per cent is the maximum auto insurers can build into their rate submissions and that the actual return on equity for property and casualty insurers last year was 6.8 per cent — about half that of Canadian banks.
Finance Minister Dwight Duncan said the government has done “a lot” to curb the cost of auto insurance.
Those measures include reforms that capped benefits for minor injuries like whiplash at $3,500 unless policy holders upgrade their coverage at additional expense.
The government is preparing to take another look at fraud, which McCarter put at $1.3 billion annually, with a task force set up earlier this year, Duncan said.
There is suspicion that insurance fraud on staged accidents and faked injuries, with clinics in collusion billing for bogus treatments, accounts for 10 to 15 cents of every dollar paid in premiums.
Currently, the cost of living is so high and the last thing any driver needs to include in their budget, is the ever increasing insurance premiums (which are seldom ever justifiable) of the private insurance companies. Given the obscene profits which the private insurance companies make in Ontario, the best solution available to consumers, (who have no choice but to purchase automobile insurance if they want to drive) is to insist on Public Auto Insurance.
Several Provinces, British Columbia (ICBC), Manitoba, Saskatchewan and Quebec have provincially owned and operated automobile insurance and the residents benefit from the cheaper premiums. Ontario Private Insurance Companies offer the most expensive automobile insurance in Canada.
Auto Insurance Rates for the Third Quarter of 2011 [Bill 5]
FSCO will continue to ensure that rate changes by insurance companies are reasonable and justified, and that rates charged are balanced with the ability of companies to meet future claims costs.
ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS APPROVED
July 1, 2011 to September 30, 2011
2010 Market Share %
Effective New Business Date
Effective Renewal Business Date
Approved Rate change %
Co-operators General Insurance Company
Intact Insurance Company (4)
Intact Insurance Company
Intact Insurance Company (1)
Motors Insurance Corporation
Novex Insurance Company (4)
Novex Insurance Company (1)
Optimum Insurance Company Inc. (2)
Pafco Insurance Company
Personal Insurance Company
Portage La Prairie Mutual Insurance Company
State Farm Mutual Automobile Insurance Company
Waterloo Insurance Company
Wawanesa Mutual Insurance Company
Western Assurance Company
XL Insurance Company Limited (3)
York Fire & Casualty Insurance Company
Zenith Insurance Company
- Includes the acquisition of AXA Insurance (Canada) and AXA Pacific Insurance Company.
- Rate Change with no overall impact.
- XL is a new entrant to the Ontario automobile insurance market.
- Annual rate cap filing impact – This is the estimated residual impact of a previously approved rate filing that introduced rate capping procedures. The purpose of rate capping is to minimize the rate change for a particular risk over a period of time.
Total Market Share Represented: 39.66%
Weighted Average Rate Change:
July 1, 2011 to September 30, 2011
Weighted Average Rate Change %
Third Party Liability-Bodily Injury
Third Party Liability-Property Damage
Standard Accident Benefits
Direct Compensation-Property Damage
OPCF 44R Family Protection