Although the insurance industry applauds the efforts of the
Insurance Bureau of Canada’s Ralph Palumbo in lobbying for the passage of Bill 171, reaction from the public has been strong and indignant – insurers are only out for bigger profit margins, many seem to feel.
“Insurance companies have more money to spend on advertising illustrating accident victims as snakes,” writes Greg Smith. “Shame on the IBC and Mr. Palumbo. When we pay our premiums we should be able to use the benefits!”
Palumbo, the Ontario vice-president of the IBC, has been lobbying hard on behalf of the insurance industry at Queen’s Park to encourage MPPs to pass Bill 171. Meeting the auto premium reduction targets set by the Ontario government – 15 per cent – requires a “dose of reality,” which Bill 171 offers.
“It is encouraging,” Palumbo told Insurance Business, in regard to the 5.67 per cent gains made by the industry to date, “but it isn’t going to get us to that 8 per cent target set for this August. That is why we need Bill 171 passed, so we can tackle pre-judgment interest on tort claims.”
But those outside of the industry remain skeptical, as revealed by comments from Tammy K.
“I have been watching the benefits of legitimate survivor benefits being slashed over and over to help the insurers profit margins,” she wrote. “Mr. Palumbo, how do you and the IBC sleep at night? God forbid, you or yours are very seriously injured in a MVA and ASSUME the benefits are available.” (continued.)
#pb#
Palumbo also pointed out a concern held by insurers about the need for real bodily injury reform, stating that “if we are to be realistic about the 15 per cent target… there is a responsibility for companies to charge what is being paid out. The system currently isn’t sustainable.”
But the realities of Ontario’s current state of auto insurance are apparently not being seen by the average driver, judging by these comments:
“Maybe Mr. Palumbo should acknowledge that his dog-and-pony show has nothing to do with fraud but everything to do with increased profits at the expense of accident victims,” wrote Devils Trumpet.
