September 2, 2003
Ontario car insurance industry in “crisis”
Toronto, Ontario – An announcement by the Ontario provincial government that insurance companies must reduce their rates by 15% immediately has been greeted with skepticism by members of the insurance community.
“It’s great that the government is addressing the concerns of the consumer, but if they don’t address the concerns of the insurance companies, this move will only make it more difficult to find insurance,” said Lee Romanov, President of the Consumer’s Guide to Insurance.
“The insurance companies, right now, and in the foreseeable future, have closed their doors to writing new business in Ontario. It is next to impossible for a driver with less than a perfect record to get insurance for under $3,000,” said Romanov.
To solve the insurance crisis, Romanov suggested the government create an environment to help insurance companies control their losses and fraud. “Bill 198 addresses the insurance companies’ issues. The question is, will the government address the bill?” she stated.