Auto insurance testimony confirms increased profits not passed to drivers: NDP

Queen’s Park – Today Jagmeet Singh, NDP Consumer Services Critic, slammed the Wynne government after evidence from auto insurance hearings at Queen’s Park yesterday showed the Liberal government sided with auto insurance companies to create billion dollar profits while premiums continue to climb inOntario.

“In stunning testimony in Committee yesterday, insurance actuary Bill Andrus presented hard evidence that the return on equity forOntarioauto insurers was an incredible 25%,” Singh said.  “We finally received official confirmation that the industry has pocketed every penny of savings flowing from 2010 benefit cutbacks and passed none on toOntariodrivers.”

“When are we going to see these billions in industry savings result in lower premiums forOntariodrivers?” Singh asked.  

In 2010, the Liberal government slashed auto insurance Statutory Accident Benefit payouts by 50 per cent acrossOntarioand 70 per cent in the GTA.

“For 3 straight years, the Ontario auto insurance industry has pocketed virtually every penny in savings flowing from the 2010 benefit cutbacks,” said Singh, “that’s $2 billion in savings a year for big Insurance and nothing for Ontario’s 9 million drivers.”

Singh said the government’s priorities puts Liberal party donors beforeOntariodrivers.  “The insurance industry – like EllisDon – has been providing large donations to the Liberal party,” Singh said.

“When will the Premier start taking the side ofOntariodrivers instead of well-connected corporate donors?”

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