As Ontario insurers keep their fingers crossed that Bill 171 will pass – while hoping the 15 per cent auto premium target will somehow soon disappear – the announced ban on the retailing of unauthorized insurance products received a thumbs-up from the province`s association of brokers.
“This commitment by the Ontario government is very important for our consumers,” said Insurance Brokers Association of Ontario CEO Randy Carroll. “I want to urge all parties to support this change and pass this budget.”
That may prove moot, as Andrea Horwath, leader of the New Democratic Party, stated this morning that she will not support yesterday's budget - a move that would send Ontario voters to the polls this June.
Carroll stated that the
IBAO was delighted that the 2014 Ontario Budget proposes to ban online retailing of unauthorized insurance products, adding that Premier Kathleen Wynne had committed to examining the issue in October of last year, and “today we are pleased to see that the government has sided with consumers.”
Currently, Credit Unions are prohibited from selling or marketing unauthorized insurance products such as home and auto insurance in their branches. Credit Unions are currently marketing insurance on their credit union websites despite the intent of regulations under the Credit Unions and Caisses Populaires Act that prohibits the promotion or selling of unauthorized insurance products, which has been a bone of contention among brokers.
Banks have the same prohibitions under The Bank Act, with those regulations having been updated in 2012 to incorporate the online space.
Ontario Finance Minister Charles Sousa delivered his budget yesterday. The $130.4 billion budget would raise taxes for high income earners, and increase the deficit to $12.5 billion for 2014-15.
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The Wynne government also renewed its commitment to encourage insurers to offer usage based insurance.
“It’s good to see that this government recognizes this innovative new technology in its ‘Fair Society’ section,” said Carroll. “This new technology along with the proper consumer protections will increase fairness in auto insurance particularly for young people.”
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