Source: IBC Press Release
On October 15, 2015, the Ontario Trial Lawyers Association (OTLA) released an updated self-funded “study” about auto insurance companies and rates. According to Ralph Palumbo, IBC spokesman, “This trial lawyer study isn’t fair, it isn’t serious, and it isn’t factual.”
The authors provide Ontario consumers with a sliver of the story: In their “findings” on profitability – they omit 25% of the province’s auto insurers. Conveniently, it’s the 25% of the market that have lost money. They also fail to mention the contingency fees that personal injury lawyers charge accident victims – which are as high as 40%.
“This trial lawyers’ study is misleading Ontario consumers. It is not an academic study. There are a number of factors contributing to the cost of auto insurance, including not only distracted driving and fraud – but also the exorbitant fees that trial lawyers are themselves demanding of innocent accident victims,” said Ralph Palumbo, a spokesman for Insurance Bureau of Canada (IBC).
“We are committed to bringing down the cost of premiums for Ontario’s drivers,” Palumbo added. “The insurance industry is working closely with the Ontario government to implement their latest reforms, which will help return more money to Ontario consumers. And we’ll continue to look for more ways to ensure that Ontarians have affordable auto insurance.”