The story ‘Politics not profit driving attack on auto insurers’ drew a number of comments from brokers, all of which summed up the frustration brokers have – caught between a political rock and a client hard place.
These Comments of the Week were started off by So Tired, who wrote:
“I am so tired of listening to all the complaints’ about the Insurance Industry, and people thinking it is their God Given right to have insurance. What people do not realize is that first of all Filed Rules and Increases are approved by the government so the government needs to stop the bull and really let the people know they approved all the increases.”
Another reader, Duncan, also chimed in:
“Any time that political gains and brinksmanship are the motivating factors in setting industry pricing, there is going to be a lot of conflict. Government should be involved in regulating the insurance industry - determining what can and cannot be insured, what can and cannot be stated as conditions for the insurance. As soon as they attempt to regulate how insurance companies set their pricing, they are intervening in business in a way that is not conducive for industry and economy.”
Another comment took direct aim at the NDP and the Member of Provincial Parliament who spearheaded the 15 per cent premium reduction target last spring, Jagmeet Singh:
“Pricing need never be regulated by government when there is a lot of competition as there is in Ontario auto,” wrote Paul. “The ROE in Ontario auto makes it quite clear that the problem is not profits but rather the intrinsic cost of the product. (The most generous Auto AB scheme in North America, if not the world). (continued.)
#pb#
“The real problem is the stupidity of the likes of Mr. Singh and the NDP.”
In the original
story, MPP Singh said that Ontario drivers are “tired of waiting” for their auto insurance cuts, accusing the industry of foot-dragging on implementing the 15 per cent premium reduction target, of which 8 per cent is the first target for this August (the total 15 per cent set for 2015).
Ralph Palumbo of the
Insurance Bureau of Canada leapt to the defence of brokers, telling Insurance Business magazine “Insurers have done more than their share” when it comes to maintaining low insurance premiums. “When he (Singh) says ‘the industry is making billions’ it is just crass political opportunism. It is just disappointing, as he is misleading the public.”
