After describing Canada’s auto insurance market as a “rollercoaster,” insurance leaders at the National Insurance Conference of Canada outlined their hopes for industry reform, and the way brokers play a role in it.
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Desjardins executive began by calling for jurisdictions to provide a more stable market for consumers.
“First, we need an understanding of what the objective and intent of the auto policy is,” said Barbara Bellissimo, SVP, Desjardins General Insurance Group. “Secondly, we need simplicity in the product, and thirdly, we need stability.”
Bellissimo believes that simplicity is particularly fundamental in the claims process, as a complex system such as Ontario’s begets uncertainty, higher costs and an increased likelihood for disputes.
IBAO President Michael Brattman echoed this sentiment, and emphasized the need for brokers to educate clients on insurance products, particular in Ontario where automobile reforms have been ongoing since 2010.
“Not everyone understands what they have bought – oftentimes they just go for the lowest price. It’s one of those things where we have to have meaningful conversations every time we talk with our clients to explain coverage options, the products they’re buying and whether they understand the claims process, when that occurs,” he said.
Brattman also made a case for diminished price fluctuation, which “in turn leads to increased consumer confidence.”
Another panellist proposed that the industry should foster best practices in diagnostic treatment protocols, modeled after those in operation in Alberta and Nova Scotia, to reduce costs and limit the potential for disputes in the claims process.
Brattman also acknowledged claims expenses, and recommended that Ontario adopt a tort cap similar to those in New Brunswick, Nova Scotia, and Alberta, as well as a cap on lawyer contingency fees.
Finally, the speakers noted that regulation is necessary since it helps to prevent abuse, such a policy in Alberta that forbids discrimination based on credit ratings. Government intervention, however, should be met with oversight to confirm that regulations do not hinder innovation and ensure rates filed are in line with coverage provided.
