The Ontario Broker - Volume 24, Issue 2 - 13

L
ast month the Ontario Government released its 2024 Budget. A
headline-grabbing feature of the budget was the long-awaited
announcement of reforming the Ontario Auto product. What exactly
those changes are going to be has still yet to be determined. However,
the IBAO works closely with Ontario's Ministry of Finance and they've shared
with us that the changes will:
* Be Industry Led - The final details will be built by a group of
stakeholders, which includes IBAO
* Not Be Rushed - There are no defined timelines for when these
changes will be made available to consumers
* Avoid Using Prescriptive Premium Targets - With more choice,
more competition and removal of red tape, any cost savings would be
market driven, not government driven.
" Reforming Ontario Auto Insurance is complex and we're glad to be able
to work with Insurance Brokers Association of Ontario and draw on their
expertise, " said Minister of Finance, Peter Bethlenfalvy.
Let's take a closer look under the hood at the proposed reforms addressed in
the budget:
There's a focus on optionality
" Mandatory auto insurance accident benefit coverage will continue to
apply to medical, rehabilitation and attendant care benefits, while all
other benefits would become optional. "
There'll be a review of the health service provider guidelines and
framework
" The government is requesting that the Financial Services Regulatory
Authority of Ontario (FSRA) review the Professional Services Guideline
and the Attendant Care Hourly Rate Guideline, and consider updating
these guidelines based on their findings. "
Auto Insurance to become the first payer
" The government will be proposing to make auto insurance pay for
medical and rehabilitation benefits following an auto accident before
extended health care plans do. This would apply to all automobile
accidents, regardless of the injury sustained. "
There'll be a review of how claims processing works at FSRA
" The government is also requesting that FSRA conduct a review of the
Health Service Provider Framework and the Health Claims for Auto
Insurance (HCAI) system to find administrative and cost efficiencies to
contribute to having a more modern and efficient system. "
Reforming Ontario
Auto Insurance is
complex and we're
glad to be able to
work with Insurance
Brokers Association of
Ontario and draw on
their expertise
" There's been discussion that with additional
consumer choice, comes additional work
and risk for brokers. We've suggested to the
government that for this reason, these changes
will need to come with new protections for
brokers, " said IBAO CEO Colin Simpson. The
Government has confirmed that they are open to
hear our recommendations in this regard.
In the budget there's a continued commitment
to review the use of territorial rating, which
is something we've advocated for. The budget
notably doesn't include mention of using credit
scoring for auto insurance, which is one measure
we've advocated against. Our positions on
both of these issues are crucial for protecting
consumers, especially the most vulnerable
among them.
We'll continue to work with the Ministry of
Finance, and it seems as though there'll be a lot
of work to be done. We're building a working
group of expert brokers to help us advise the
government and generate suggestions of changes
that will be of the greatest benefit to consumers.
Volume 24 | Issue 2
13
The Ontario Broker - Volume 24, Issue 2

Table of Contents for the Digital Edition of The Ontario Broker - Volume 24, Issue 2
