Ontario is now characterized as a “have not” Province. This distinction was bestowed upon Ontario, before the economy fell to an all time low.
Since the bottom of the economy fell out, Ontarion’s have experienced permanent job loss, high unemployment, loss of savings, high bankruptcy rates, loss of homes and relationships.
When Ontario Premiere Dalton McGuinty announced that the Province of Ontario was going to implement the Harmonized Sales Tax (which will convert the P.S.T to a value added tax which will be harmonized with the G.S.T.) or (H.S.T – which is a combination of the Ontario Retail Sales Tax (P.S.T -8%) and the Federal Goods and Services Tax (G.S.T – 5%) = 13%) on July 1, 2010 Ontarion’s (who understood that new services and items would now cost much more due to this new tax) scratched their heads in disbelief. Why would the Provincial Government want to increase taxes on an electorate who cannot reasonable afford to pay more when they have much less?
The all consuming avarice of private Insurance companies, operating out of Ontario, has led the government to modify the financial landscape to allow insurance companies to enjoy greater profit, at the expense of Ontarion’s. Recently it was announced that the Provincial Government would lower the compensation insurance paying consumers would receive, if involved in an automobile accident. The Ontario Government agreed with insurance companies that accident benefits should be reduced from $ 100,000 to a mere $ 25,000. Provincial Finance Minister Dwight Duncan said that he wanted to quickly pass this legislation, which would make multiple changes to help the insurance industry to realize maximum profit, paid for by Ontarion’s.
It was recently reported that automobile insurance increases were authorized. It is the Chief Executive Officer and Superintendent of Financial Services for the Financial Services Commission of Ontario who authorizes such rate increases (see section 410 of the Insurance Act) The current C.E.O and Superintendent of Financial Services is Mr. Bob Christie who was appointed by the Dalton McGuinty Provincial Government on September 6, 2005.
Almost every Ontarion that invested in the stock market, lost monies on their investments in 2008. Naturally the more one invested, meant the more one would serve to lose. Insurance companies made profits of 2.8 Billion dollars in 2008. Remember how an insurance company defines “loss”. If in 2007 an insurance company calculated its’ profit at 500 million dollars and in 2008 it calculated its’ profit at 400 million dollars, it can state that it “lost 100 million dollars” in 2008.
Based on the insurance industries energetic lobbyists. lobbying the McGuinty Government, to change the regulations, the Liberal Government is listening and will eventually capitulate and pass legislation that great enhances the insurance industries ability to maximize their profit while curtailing their expenses. The losers in this scenerio will be the consumer who is forced, if they want to drive, to purchase auto insurance in Ontario.
Previously there was legislation (Automobile Insurance Rate Stabilization Act, 2003
S.o. 2003, chapter 9 – assented to on December 18, 2003) in place to control the incredible profit that insurance companies were raking in. This Act was designed to temporarily freeze automobile insurance rates for private passenger vehicles. This legislation worked hand in hand with the Insurance Act of Ontario.
What kind of auto insurance premium increases will Ontarion’s be subjected to ?
Some premiums will increase 17% and this is just the beginning.
In the 2nd Quarter of 2009 the Financial Services Commission of Ontario approved auto insurance premium increases to 7.8% to some insurance companies (over 12 months) where other insurance companies doubled that increase.
Policy holders with the following list of Insurance Companies, will be adversely affected and will have his/her premiums increased, now and over the next few months (double digit increases). FSC is an abbreviation for the Financial Services Commission of Ontario (“FSC“):
CAA -premium rate increases of 12.10 % have been authorized by the FSC.
COSECO -premium rate increases of 10.40 % have been authorized by the FSC
Economical – 4th Quarter 2008 + 2nd Quarter 2009 = 11.02 %
Intact Financial (former ING Canada) – rates have increase about 17% since October, 2007
Pilot – 4th Quarter 2008 + 2nd Quarter 2009 = 16.70 %
Scottish and York -premium rate increases of 10.00 % have been authorized by the FSC
TD General Insurance -premium rate increases of 10.00 % have been authorized by the FSC
It looks like Ontarion’s need protection once again from those private insurance companies who sell auto insurance in Ontario. Perhaps it’s time for the Ontario Government to implement the Automobile Insurance Rate Stabilization Act, 2009.