The Insurance Bureau of Canada (IBC) is drawing attention to the recently released 2023 Ontario Budget, issuing a statement applauding the government’s focus on costs and fraud in the system. “It’s clear the government is committed to making driving less expensive for Ontarians,” says the IBC’s vice president, Ontario, Kim Donaldson.
In the budget, the government says it is taking action to make auto insurance more affordable. Previous commitments in earlier budgets included a promise to crack down on fraud and abuse and to consider options that would allow more choice for consumers, reduce disputes and improve health outcomes for those involved in accidents. Going forward, the 2023 budget repeats the same message that the government may allow expanded choice and options for consumers purchasing auto insurance and repeats that fraud is a driver of costs.
Notably, the budget would appear to discuss new obligations for insurers in the province, as well. The Ontario budget document states that the government has empowered the Financial Services Regulatory Authority of Ontario (FSRA) to request fraud information from insurers on an ongoing basis. “FSRA is working on the development of a fraud reporting tool that will be used to hold insurers accountable for managing, reporting and tracking fraud and will assist in fraud detection, prevention and deterrence,” the document states.
In a separate discussion about costs, the document states, “Particularly in this period of high inflation, the government is concerned about the burden of high auto insurance costs on consumers and expects all participants in the system, including the auto insurance industry, to work together to keep costs down for consumers.”
