03.12.2014, 17:12
Aviva Canada Applauds Ontario Government’s Passing of Bill 15
OREANDA-NEWS. Outlines further changes needed in the continuing goal to make auto insurance more affordable and accessible.
Aviva Canada is today applauding the Ontario Government for their passing into legislation of Bill 15. The Bill, which relates to the Ontario auto insurance system and was easily passed in the House of Commons yesterday, will:
Reduce extraordinarily expensive vehicle storage costs that some facilities and towing companies charge when they know drivers have no other option;
Create a new and more efficient system to expedite the hearing of disputes, thereby preventing backlogs and helping reach decisions in a timely manner;
Align pre-judgment interest rates on pecuniary and non-pecuniary damages (pain and suffering) to today’s market rates.
And while these changes will assist in the reduction of insurance rates for Ontario drivers, there are more savings to be had within our current system.
“We are pleased that the Ontario Government passed Bill 15 without issue, it is a good first step” said Karin Ots, Senior Vice President of Regulatory and Government Relations for Aviva Canada. “But to truly affect long-term change for the Ontario auto insurance system, we need to reduce claims costs to be in line with other provinces.”
Ontario is one of the most heavily regulated insurance markets in the world and the benefits mandated by the government are the most expensive in Canada – offering a greater amount of benefits, a higher value of benefits and a significantly longer period in which benefits are available vs. other provinces. For every \\\$1 of premium that Aviva earns, \\\$0.65 is paid out in claims costs. Claims costs need to come down in order to reduce premiums, especially when 92% of Ontarians do not make a claim.
In Ontario, accident benefit claims have an average cost of \\\$26,863 compared to \\\$3,628 in Alberta. With 48% of those costs going to non treatment expenses such as legal fees and assessments vs. the 52% that go to actually treating of victims (based on Aviva Canada data). The Ontario automobile insurance system is an integral part of the economy, but extraordinarily high amount of claims costs are being spent on healthcare providers, lawyers and other service providers. Reducing these costs would lower premiums.
For bodily injury tort claims, the average cost in Ontario is \\\$157,133 while it is only \\\$50,020 in Alberta. While Aviva Canada has already taken measures to make rate reductions, it requires involvement from the government to make these reductions sustainable. Both accident benefit and bodily injury figures come from IBC Analysis of 2012 GISA data.
A recent online survey of 1,000 Ontarians, commissioned by Aviva Canada and conducted by Crunch Research, revealed that over 96% of Ontarians would like to reduce the auto insurance rates that they pay. At Aviva, we believe that auto insurance rates in Ontario are too high, and we are taking steps with our government officials to address the issue.
Aviva Canada is today applauding the Ontario Government for their passing into legislation of Bill 15. The Bill, which relates to the Ontario auto insurance system and was easily passed in the House of Commons yesterday, will:
Reduce extraordinarily expensive vehicle storage costs that some facilities and towing companies charge when they know drivers have no other option;
Create a new and more efficient system to expedite the hearing of disputes, thereby preventing backlogs and helping reach decisions in a timely manner;
Align pre-judgment interest rates on pecuniary and non-pecuniary damages (pain and suffering) to today’s market rates.
And while these changes will assist in the reduction of insurance rates for Ontario drivers, there are more savings to be had within our current system.
“We are pleased that the Ontario Government passed Bill 15 without issue, it is a good first step” said Karin Ots, Senior Vice President of Regulatory and Government Relations for Aviva Canada. “But to truly affect long-term change for the Ontario auto insurance system, we need to reduce claims costs to be in line with other provinces.”
Ontario is one of the most heavily regulated insurance markets in the world and the benefits mandated by the government are the most expensive in Canada – offering a greater amount of benefits, a higher value of benefits and a significantly longer period in which benefits are available vs. other provinces. For every \\\$1 of premium that Aviva earns, \\\$0.65 is paid out in claims costs. Claims costs need to come down in order to reduce premiums, especially when 92% of Ontarians do not make a claim.
In Ontario, accident benefit claims have an average cost of \\\$26,863 compared to \\\$3,628 in Alberta. With 48% of those costs going to non treatment expenses such as legal fees and assessments vs. the 52% that go to actually treating of victims (based on Aviva Canada data). The Ontario automobile insurance system is an integral part of the economy, but extraordinarily high amount of claims costs are being spent on healthcare providers, lawyers and other service providers. Reducing these costs would lower premiums.
For bodily injury tort claims, the average cost in Ontario is \\\$157,133 while it is only \\\$50,020 in Alberta. While Aviva Canada has already taken measures to make rate reductions, it requires involvement from the government to make these reductions sustainable. Both accident benefit and bodily injury figures come from IBC Analysis of 2012 GISA data.
A recent online survey of 1,000 Ontarians, commissioned by Aviva Canada and conducted by Crunch Research, revealed that over 96% of Ontarians would like to reduce the auto insurance rates that they pay. At Aviva, we believe that auto insurance rates in Ontario are too high, and we are taking steps with our government officials to address the issue.
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