Significant Insurer Profits Post September 2010 Auto Changes

Posted by on September 12, 2011 under Our Firm | Comments are off for this article

As Ontario auto insurers continue to lobby the government for dramatic changes to restrict the definition of catastrophic impairment, the financial results of the cutbacks made in September of 2010 are starting to become apparent. Economical Mutual’s second quarter income went from a $3.6m loss in 2010 to a profit of $23.2m this year. Underwriting results improved to $26.5m despite $26.2m in losses from weather-related catastrophes.
The proposed changes to the definition of catastrophic recommended by FSCO’s appointed medical panel have been deferred until after the Ontario Provincial election. With a dramatically improving profit picture for Ontario auto insurers, perhaps whichever party forms the next government will see fit to resist the call to restrict access to adequate levels of funding for medical expenses for those that are the most seriously injured people in the Province.

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