The Insurance Bureau of Canada (IBC) has responded to the Ontario government’s 2020 budget plan, praising the provincial government’s plan to reform the region’s auto insurance system.
Called “Ontario’s Action Plan: Protect, Support, Recover,” the government’s plan will set aside a total of $45 billion to support more than three years of programs and resources to support residents and businesses affected by the pandemic. One of the initiatives the government will work on are reforms to Ontario’s auto insurance system – with a focus on increasing competition and innovation in the market, improving deterrence of insurance fraud, and expanding choice for consumers by allowing for new products.
"During these uncertain times, the Ford government continues to show its adaptability and support for auto insurance consumers," said IBC Ontario vice president Kim Donaldson. "Today's budget removes barriers for insurers who are committed to offering the innovative products that consumers are accustomed to receiving from other sectors.”
Donaldson added that the budget fosters innovation by allowing insurers to introduce new products to the market that help drivers control their premiums. The budget also acknowledges the growing demand for usage-based auto insurance by removing restrictions on the coverage, the vice president noted.
IBC also mentioned in its statement that it is pleased to see the government’s commitment to improving the consumer experience for Ontario drivers through measures such as enabling a fully digital auto insurance experience, and its promise to crack down on fraud with a review of Ontario’s towing system.
