Auto insurance rate cuts are behind schedule, but the Liberal government insists it can meet its 2 year target of a 15% reduction. Promising an 8% target in the first year, Finance Minister Charles Sousa says they’ve only seen a 6% decrease with than a year to go before their August 2015 deadline .
The Finance Minister believes that with legislation the majority Liberal government will reintroduce they can still meet their 15% target. Some companies, he said, already have cut rates in excess of 10%.
“We’re on track,” Sousa said Thursday. “We need to do better in terms of making those reductions happen. I’m looking forward to enacting the very piece of legislation that was held up so that we can get back and get on track.”
Originally introduce last Spring, Bill 171, the Fighting Fraud and Reducing Insurance Rates Act, would introduce a number of reforms aimed at lowering costs within the insurance system, like fraud. Some of it’s specific measures include:
- Changes to the Dispute Resolution System to help injured Ontario drivers settle disputed claims faster.
- Establishing a system for licensing health service providers.
- Improving communication with insureds regarding vehicle storage after a loss, lowering claims costs.
- Establishing of a special investigation and prosecution unit on auto insurance fraud.
Progressive Conservative critic Vic Fedeli said he doubts the Liberal government will meet its 15% target. “They haven’t met their numbers so far,” he said. “I can’t see them heading in a direction that meets their numbers.”