A report just released by the Ontario government takes a look at the region’s auto insurance industry and offers a number of recommendations to address several issues deemed to be plaguing the sector.
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The report, prepared by provincial auto insurance adviser David Marshall, found that minor injuries account for between 70 and 80% of auto insurance claims in Ontario. Catastrophic injuries, on the other hand, account for about 1%.
The same report also observed that the province’s recent auto insurance reforms have resulted in lower insurance rates. Reforms have also led to prohibiting rate increases for minor at-fault accidents, expedited benefits for drivers with disputes, transparent towing and vehicle storage rates, and a winter tire discount.
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To improve consumer experience, improve the health outcomes of those injured in collisions, and reduce insurance costs, Marshall recommended the following steps be taken by the auto insurance industry:
- Prohibiting most cash settlements
- Implementing mandatory programs of care to treat common injuries
- Introducing independent, hospital-based examination centres to provide single medical assessments
- Increasing the financial services regulator’s role in monitoring and investigating practices in the auto insurance system
According to a provincial government release, Ontario “will consult on the recommendations and announce details of those consultations in the coming weeks.”
“Affordable auto insurance and improved health outcomes for those injured in accidents are part of Ontario’s plan to create jobs, grow our economy and help people in their everyday lives,” the release added.
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