Ontario: Premier Wynn Pleases Financial Supporters in the Insurance Industry by Delaying Auto-Insurance Decreases

Update: see previous posts – May 3, 2013 Ontario: Liberals to Build Additional HOT Lanes and Introduce High Occupany Toll Lanes, May 2, 2013 Ontario’s 2013 Budget: Driver’s Will Save On Auto-Insurance Premiums in Future, May 1, 2013 Ontario: Driver’s Should Save $225 Every Year Based On May 2, 2013 Budget, April 30, 2013 Ontario Auto Insurance: Accident victim Wins Challenge to Ontario’s $3,500 Minor Injury Cap, March 2, 2013 Ontario: If Auto-Insurance Premiums Are Not Lowered, Ontarians May Face Spring Election, February 5, 2013 Ontario: Time to Reduce Auto-Insurance Premiums for All Ontario Drivers, August 29, 2010 Auto Insurance Companies Whine about Medical Costs, August 22, 2010 Auto Insurance Rules Change September 1, 2010 (Ontario), November 13, 2009 Home Insurance Skyrockets in Ontario, November 5, 2009 Liberals Take Care of Ontario’s Auto Insurance Companies, October 5, 2009 Ontario Liberals Support Auto Insurance Profits, July 19, 2009 Insurance Rates Skyrocket in Ontario, June 11, 2009 Insurance Companies exercise discrimination due to “perceived genetic risks”., May 18, 2009 Ontario Auto Insurance – Reducing Accident Benefits from 100 to 25 Thousand Dollars.

While running for hte office of Premier of Ontario to replace Dalton McGuintywww.680news.com

In the recent leadership race of the Liberal Party of Ontario, the Insurance Bureau of Canada (IBC)  contributed over $60,000.00 to the leadership frontrunners. Kathleen Wynn accepted $25,000.00 in contributions for her election campaign.  After receiving and accepting the twenty-five thousand ($25,000.00) from the IBC, her campaign was effective and she was elected Premier of Ontario on the third ballot on January 26, 2013. In September 2010, the Ontario government increased auto-insurance premiums and cut the benefits in half. In 2011 the value of statutory accident payouts fell by just under $2 billion, an astonishing 50 per cent reduction from 2010, but that same year Ontario’s auto insurance rates still increased by 5 per cent.  When NDP Leader Andrea Horwath initially demanded a auto-insurance reduction for Ontarians, Wynn said it wouldn’t happen.  She changed her mind as the budget approached to maintain power and placed it in the budget, but she refused to provide a guideline as to the date it would start.  She spoke with her supporters in the auto-insurance industry and she says that it (reducing the rate) is complex.  How complex can it be Kathleen? If the insurance companies that offer auto-insurance, can send out a letter to a driver increasing their rates anywhere from 5-20%, then that same letter could reduce the same driver’s rate by 15%.  The IBC is banking on Premier Wynn to maintain the ever increasing profits Ontario auto-insurance companies made in 2011 & 2012 (statutory accident payouts fell by $2 billion in 2012 and alittle less in 2011). The IBC has atotal premium base of $44 billion, approximately half ($22 Billion) of which is derived from automobile insurance.  Photo by www.680news.com

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Premier Kathleen Wynne has slammed the brakes on the possibility of the minority Liberals achieving a 15 per cent cut on auto insurance rates within the NDP’s one-year deadline.

“I just don’t believe that it’s possible for us to put a firm date,” Wynne told reporters in Brampton, where she was promoting the budget measure in a bid to pressure the New Democrats to support the government.

“We’ve talked to the industry and we understand that it’s complex. We understand that there are changes across the system that need to be made so we have to do this in a prudent way,” the premier said Thursday.

“It has to be a viable outcome because what I don’t want to do is create a situation where there are people who won’t be able to get insurance because the insurance industry says, ‘Well, you’re pushing us too hard, we just won’t write insurance for certain parts of the population,’ ” she said.

The Insurance Bureau of Canada contributed Twenty-Five Thousand Dollars ($25,000.00) to Kathleen Wynn's political campaign, which resulted in her election to the position of premier on January 26, 2013.  The longer Premier Wynn delays the introduction of auto-insurance rates for drivers in Ontario, the more profits that the Ontario Auto-Insurance generate.
The Insurance Bureau of Canada contributed Twenty-Five Thousand Dollars ($25,000.00) to Kathleen Wynn’s political campaign, which resulted in her election to the position of premier on January 26, 2013. The longer Premier Wynn delays the introduction of auto-insurance rates for drivers in Ontario, the more profits that the Ontario Auto-Insurance are able to generate.

“I am not willing to put people at risk in that way.”

Cutting car insurance premiums is a cornerstone demand NDP Leader Andrea Horwath has made of Wynne in exchange for not toppling the Liberals when the budget is voted on.

It was one of seven policy requests made by Horwath that Finance Minister Charles Sousa incorporated into the May 2 budget.

Wynne made a point of praising NDP MPP Jagmeet Singh (Bramalea—Gore—Malton), as well as Liberal MPP Vic Dhillon (Brampton West) and Municipal Affairs Minister Linda Jeffrey, for highlighting the soaring GTA auto insurance rates.

Singh, main champion of the 15 per cent cut, said “a gradual reduction over one year” is not unreasonable and expressed concern that the Liberals may water down the pledge.

“The key problem is that the accountability is not there. Time and time again we’re promised things, but there’s no follow-through,” he said outside the Bramalea home where Wynne held her campaign-style event.

“This is a key issue. If we’re not seeing any concrete timelines, any concrete deadlines in terms of when we’ll see this 15 per cent reduction, it’s meaningless.”

The policies of the Ontario Liberal McGuinty government has allowed the private auto-insurance industry to make billions of dollars in profit.  The auto-insurance industry made a $25,000.00 contribution to Kathleen Wynn's Liberal leadership campaign, believing that like McGuinty, under Wynn the good times will continue to roll.  Wynn is trying not to disappoint her new friends.
The policies of the Ontario Liberal McGuinty government has allowed the private auto-insurance industry to make billions of dollars in profit. The auto-insurance industry made a $25,000.00 contribution to Kathleen Wynn’s Liberal leadership campaign, believing that like McGuinty, under Wynn the good times will continue to roll. Wynn is trying not to disappoint her new friends.

This week, Horwath has been introducing new conditions that must be met before her party can allow the budget to pass and avert a June vote that would cost $92 million and come 20 months since the last provincial election.

On Wednesday, the NDP leader demanded the creation of a $2.5 million a year “Financial Accountability Office” — modelled on the federal Parliamentary Budget Office — to provide oversight of provincial spending.

Friday morning at Queen’s Park, she will seek measures “to put accountability in the health-care system” and ensure the Liberals abide by a guarantee that home-care services are delivered within a maximum of five days.

Wynne said she was trying to keep an open mind about the New Democrats’ wish-list.

“In terms of the other requests the NDP is making at the moment . . . we don’t have a full list, we’re not exactly sure what the requests are,” the premier said.

“We believe that it’s not a bad idea that we have that discussion about the latest suggestion. My hope is that we’ll be able to get the budget passed.”

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