Barb Taylor, the director of policy at the
Insurance Bureau of Canada, had some tough talk for what she called the “strong opponents” of those fighting for change in the insurance industry.
“We have strong opponents. These groups also have the ear of government and will seek media attention. Specifically, I am talking about trial lawyers, medical rehab providers and the NDP,” Taylor told a rapt audience at yesterday’s 2015 Crystal Ball conference. “We are asking the government to require personal injury lawyers and paralegals who represent auto insurance claimants to submit to the Superintendent all information about their fees – including contingency fee arrangements, disbursements, court awarded and settled costs, and referral arrangements."
Taylor went on to say that the Superintendent would then review this information, assess the impact on auto insurance costs, and issue an annual report, adding that the government could also introduce a consumer-friendly fee disclosure statement.
“We think these changes would bring much needed scrutiny, transparency and fairness,” said Taylor. “We need to keep the government’s attention focused on what matters: the development of a sustainable auto insurance product that serves the needs of Ontario consumers.”
Taylor told the gathering of P&C brokers and assorted industry players that the Liberals hold a majority government and now control the political agenda.
“Because the government is committed to lower insurance costs, we have a great opportunity to achieve the changes we know are needed,” she said. “But it won’t be an easy ride.”
In Taylor’s view, the most aggressive of these “opponents to change” are the personal injury trial lawyers.
.jpg)
“They stand to lose out on a lucrative income stream, so they will come out swinging hard against much-needed reforms. We need to swing back twice as hard… with the facts.”
Personal injury lawyers are one of the few players in the auto insurance system with no regulatory oversight over their pricing scheme.
“Is that fair or reasonable? We don’t think so,” she said, “especially since legal representatives receive as much as 40 per cent of their clients’ settlements in contingency fees.”
