Insurance Bureau of Canada to Ontario NDP: "Show Us Your Math"

TORONTO, May 22, 2012 /CNW/ - In response to a news release and comments from Ontario NDP MPP Gilles Bisson,  Insurance Bureau of Canada today offers details from a new actuarial report, which concludes that Ontario Private Members Bill 45 will have a significant impact on drivers in Northern Ontario.

The report, from J.S. Cheng Partners Inc., states that "by averaging northern and southern territories, urban and rural territories as one group, drivers in the low cost northern territory will have to subsidize the drivers in the southern or urban territories."  In addition, the report notes that "the cost of implementing a new unproven rating system will increase the premiums of all drivers."

IBC Ontario Vice President Ralph Palumbo says the NDP can't see the forest for the trees and he says it's clear to him - there is no fairness in this.  "The NDP cannot offer any evidence to back their claims about Bill 45, but Insurance Bureau of Canada is happy to share our report with the public.  You will see that there is a serious problem with claims costs in the south, not the north. Why the NDP chooses to spread the pain of high insurance premiums instead of tackling the real problem is beyond our understanding."

IBC is strongly urging all MPPs, and in particular MPPs representing northern and rural constituencies, to defeat Bill 45 on June 7, 2012.

About Insurance Bureau of Canada
Insurance Bureau of Canada is the national industry association representing Canada's private home, car and business insurers. Its member companies represent 90% of the property and casualty (P&C) insurance market in Canada. The P&C insurance industry employs over 114,000 Canadians, pays more than $7 billion in taxes to the federal, provincial and municipal governments, and has a total premium base of $40 billion.

To view media releases and information, visit the media section of IBC's website at www.ibc.ca and for IBC on Twitter follow @insurancebureau.

or for an interview, contact Steve Kee, Director of Media Relations, 416-362-2031, Extension 4387 or email [email protected].