THE TRUTH REVEALED ABOUT INSURANCE COMPANIES’ PROFITS IN ONTARIO

Dr. Fred Lazar and Dr. Eli Prisman have updated the 2013 report to include data for 2014. The update found that consumers likely overpaid by $1.5 billion in the last two years alone. This includes overpayments of $700 million (or about $100 for each insurance policy) in 2014 on top of the $840 million in 2013. In addition to overpaying for insurance, the report concluded that the total industrywide profits in 2014 alone were 10.6 per cent – or nearly twice the levels considered reasonable. To read more about auto insurance and to download a copy of the report, click the “Download The Report” icon on the right side of this page.....

More:

http://truthaboutinsurance.ca/drs-lazar-prisman-report/

Profits Soar for Ontario Auto Insurance Companies

The stated aim of the deductible is to eliminate “nuisance” cases from the system. But that is achieved by the threshold. The deductible is just another way to line the pockets of auto insurance companies. If the Ontario government sees the need to tie the deductible to inflation,why are no-fault accident benefits not tied to inflation?.......

Last week, an updated study from York University School of Business Professors Fred Lazar and Eli Prisman was released that reveals consumers likely overpaid $1.5 billion in the last two years for auto insurance. This includes overpayments of $700 million (or about $100 for each insurance policy) in 2014 on top of the $840 million ($120 per policy) in 2013.....

More:

http://otlablog.com/profits-soar-for-ontario-auto-insurance-companies/

OTLA: Updated study shows Ontario auto insurance is "fundamentally broken"

TORONTO, Oct. 15, 2015 /CNW/ - An updated study released today provides alarming new data on auto insurance in Ontario.
The study, conducted by York University Schulich School of Business Professors Fred Lazar and Eli Prisman, reveals that consumers likely overpaid by $1.5 billion in the last two years alone. This includes overpayments of $700 million (or about $100 for each insurance policy) in 2014 on top of the $840 million ($120 per policy) in 2013......

More:
http://news.morningstar.com/all/canada-news-wire/20151015C7206/otla-updated-study-shows-ontario-auto-insurance-is-fundamentally-broken.aspx

Ontarians pay more than double in car insurance

The price of car insurance is always a hot topic in this province. It costs Ontarians more than double to drive here, than anywhere else in Canada. New figures released today show rates have fallen marginally, less than 1%… and now an independent report found the auto insurance industry is raking in large government guaranteed profits. As Kate Carnegie reports, the liberals admitted today they have more work to do to lower the rates for drivers....

More:
http://www.chch.com/ontarians-pay-more-than-double-in-car-insurance/

Economical Insurance reports Q1 net income of $34.2 million, 2% increase in gross written premiums

Economical Insurance, a property and casualty insurance company in Waterloo, Ont., reported a combined ratio of 105.7% for Q1 2015, compared to the 105.5% reported in the same quarter a year ago, but also consolidated net income of $34.2 million for Q1 2015 compared to $1.0 million during the same period a year ago.

http://www.canadianunderwriter.ca/news/economical-insurance-reports-large-increase-in-net-income-for-q1-2015-up-to-34-2-million-from-1-0/1003607730/s7vw03Wsv64srM2vx/?ref=enews_CU&utm_source=CU&utm_medium=email&utm_campaign=CU-EN05062015

Insurance companies reaping profits

Cambridge Times
 

A few years ago when I commented in the Times on the 50 per cent reduction in benefits for people injured in car accidents, my letter was responded to within days by Ralph Palumbo. 

Ralph Palumbo is the vice-president of the Insurance Bureau of Canada and he spends his time lobbying on behalf of insurance companies for higher premiums and lower benefits. He does not represent the average person. He represents insurance companies. 

Auto insurance companies in Ontario are making huge profits right now. Mr. Palumbo is trying to take the spotlight off of this fact by making the nonsensical argument that lawyers are driving up insurance costs. Nothing could be further from the truth. 

The government took away the right to sue your own auto insurer this year and your right to sue the at-fault driver’s insurer has been severely curtailed for decades. 

Mr. Palumbo is supporting a petition presented by a Conservative MPP to have the government cap the fees of lawyers in motor vehicle accident cases. However, it is the incomes of insurance executives that should be scrutinized. 

The chief executive officer of Economical Insurance spent $28,435 for limousine service in one year. She also earned $2.9 million. I don’t know of any lawyers who ride around in limousines. 

The largest auto insurance company, Intact, paid its CEO $5.1 million last year and as of last December, he had share holdings worth $17.5 million. 

Mr. Palumbo and his clients have been fear mongering at Queen’s Park for years and governments of the day keep listening to them. 

The end result, as we can now see, is higher profits than ever before for insurance companies. Since 2010, when our benefits were cut in half, auto insurance companies have made $3 billion in profits. Case closed. 

Robert Konduras

Cambridge

 

Editor’s note: Robert Konduras is a Cambridge lawyer.

Comment

By FAIR | APRIL 28, 2015 04:58 PM

There were over 42,000 Ontario Disability Support Program (ODSP) applications last year, many of them auto accident claimants who are forced to wait many years for their benefits. There are 61,063 auto insurance cases on the docket in Ontario courts, there are over 25,000 cases at the Financial Services Commission DRS unit, and many of our members are on ODSP and CPP disability so Ontario’s insurers are already well on the road to paying less than their fair share of MVA expenses and we already have a distorted form of public auto insurance.

 

By MrKenn | APRIL 28, 2015 12:37 PM

Insurance companies never lose. Remember when they advocated better bumpers ? Well those bumpers cost more to repair so we saved nothing. How about airbags because YOU did not buckle up ? Well airbags put the cost of your car up and are expensive to replace after an accident. You saved nothing. All these "improvements" and people still kill themselves due to poor driving. As for roundabouts, all the insurance industry looks at is the number of accidents. And they are higher with those expensive #%@# things.

 

By StatusQuoContinues | APRIL 28, 2015 08:58 AM

Welcome everyone to the privatization of government mandated compulsory insurance............remember when the government proclaimed that "privatization" will create competition and LOWER premiums for Ontarians??????? - How's that working out for us so far???????. Seems these insurance companies are making record profits, while citizens continue to be gouged in the process..............Just think how the sale of hydro is going to work out for us in 20 years. The current costs are just the beginning, better get the Vaseline out - Ontarians are going to need it.

By xDEX | APRIL 27, 2015 10:46 PM

I always remember hearing a discussion on the radio about how insurance is going to be higher rates for cities with lots of roundabouts as there are more accidents with them. I also know people who were in car accidents and insurance spends more money on lawyers rather then paying out valid claims. It would be cheaper to the valid claims. There needs to be a better system put in place to minimize the waste spent on lawyers. If there is strong medical evidence, all that is needed are set fees and stop the 3 to 5 or more years of battles between lawyers and doctors. If there is going to be a payout, just work out those details and there would actually be a savings on costs. Insurance isn't hurting cause they still make profits either way.

By StatusQuoContinues | APRIL 27, 2015 09:20 PM

Banking and insurance are making record profits on the backs of citizens who are marching into poverty trying to afford it. With the grand "intensification" project in Waterloo region we can look forward to rising car/home insurance rates as crime and accidents begin to rise aswell just like Toronto. Did the grand LRT/Intensification salesman forget to tell you about the "hidden" costs of their grand scheme??????. Anyone who thinks they will see a sudden drop in insurance rates are lying to themselves............they will slowly drop across the province, but here they will remain high if not rise even higher.

Source: http://www.cambridgetimes.ca/opinion-story/5588567-insurance-companies-reaping-profits/

 

Ontario drivers overpaid $840M for auto insurance a year, study says

Premiums could drop an estimated 7.9% without hurting the insurance industry

CBC News Posted: Apr 10, 2015 12:19 PM ET Last Updated: Apr 10, 2015 8:39 PM ET

 

Ontario consumers may have overpaid for auto insurance by $3 billion to $4 billion between 2001 and 2013.

In 2013 alone, they may have paid $840 million more than they should have to insure their vehicles, 

More/source: 
http://www.cbc.ca/news/business/ontario-drivers-overpaid-840m-for-auto-insurance-a-year-study-says-1.3028074
 

The Truth Revealed About Insurance Companies’ Profits in Ontario

The York University Schulich School of Business conclude in a recent study that for the period 2001 to 2013 consumers in Ontario have likely overpaid for auto insurance by between $3 and $4 billion.

This money has not gone to accident victims nor to lower premiums for consumers – instead this money has gone straight to the insurance companies coffers. In 2010, deep cuts were made to auto insurance benefits payable to those injured in auto collisions. Those cuts resulted in $2 billion in costs savings for the auto insurers. A large majority of this windfall to the insurers was the reduction of medical and rehabilitation benefits payable to injured auto accident in victims. The standard coverage was reduced from $100,000 to $50,000. But more troubling was the introduction of the Minor Injury Guideline that in practice has seen medical and rehabilitation benefits slashed for most injured victims from $100,000 to $3,500.

More/source:
http://otlablog.com/ontario-insurance-profits/