Insurance Company 'Losses'
November 9, 2009
Since my last blog I have been reading many news articles that comment on the proposed changes to our auto insurance regulations. Most contain the same content that has been said for years. What does continue to amaze me are some of the quotes from the insurance industry itself. For example Barb Sulzenko-Laure, vice president of the Insurance Bureau of Canad is quoted in an article as saying that insurance companies in Ontario lost $400 million in the auto sector last year. The National Post quotes Randy Carroll, CEO of the Insurance Brokers Association of Ontario as stating that Ontario auto insurers are paying out $1.30 for every $1.00 they take in. I have not seen the numbers but I have to question the accuracy.
If in fact the Ontario auto insurers are losing money at that rate why do I hear advertisements on Ontario radio stations every single day by Ontario auto insurers in which they want more business. It would seem to me that if I were losing money at the rates the insurance industry claims I would not be advertising to increase my auto business. Wouldn't increasing the number of policies simply increase my losses? Why would I choose to lose money at a faster rate? Wouldn't it make more sense to reduce the number of people I insure? Perhaps our government should investigate the insurance company claims of losses a little before they make changes that will negatively impact on the people they actually are supposed to represent. After all - the changes are not truly designed to give the public lower auto premiums - they are designed to give less insurance coverage. And remember, if the auto insurance coverage doesn't pay for all the necessary medical and or rehabilitation expenses associated with injuries it will cost someone else. If that someone else is the Ontario taxpayer all the government is doing is having us subsidize the insurance companies.
If you have been injured in an accident don't let the insurers run roughsod over your rights. If you don't know where to turn you might start by looking at www.injuryalliance.com.
Please tell us what you think, we would like to hear from you.
**Note: Blog postings are subject to a screening process, they may not appear right away.**