Who sets our rates and what the industry doesn’t want you to know

On January 16, 2104 the IBC placed advertising in many or Ontario’s major newspapers in respect to who sets the rates for Ontario’s drivers. In an ad entitled “Who is the Regulator and what has he done?” the Insurance Bureau of Canada asks and answers the question “Ever wondered who decides what you pay for auto insurance? Ontario’s government-appointed regulator sets those rates.” http://www.fairassociation.ca/?attachment_id=3005

Here’s what Ontario’s regulators say:
FSCO’s Rate Approval Process : “Insurers must submit proposed changes to their rates to FSCO for approval along with supporting actuarial data. FSCO and its actuaries review this data and insurers’ assumptions regarding claims costs, expenses and investment income to ensure that, as required by law, the proposed rates are: just and reasonable, not excessive, and not going to impair a company’s long-term financial solvency. As a result of FSCO’s review, an insurance company may be required to amend its proposed rates before the rates are approved.” https://www.fsco.gov.on.ca/en/auto/rates/Pages/q4-2013.aspx

So why are we being told two versions? Why shouldn’t Ontario’s insurers take responsibility for the abysmal coverage we now have and the highest premium rates in North America? Who is driving up the costs here with expensive advertising – costs which are reflected in our premiums – money that could pay for the treatment that is denied to more than half of Ontario’s accident victims every year.

Source: http://www.fairassociation.ca
http://www.fairassociation.ca/2014/01/who-sets-our-rates-and-what-the-industry-doesnt-want-you-to-know/