Toronto-based Kingsway Financial Services Inc., a leading provider of non-standard auto insurance in Canada and the U.S., announced that it is very much in favor of recently introduced legislation to reform the Ontario auto insurance system.
The proposals, by Ontario Finance Minister Janet Ecker, target areas of abuse in handling claims. Bill Star, President & CEO, noted that the company was particularly pleased by efforts to increase accountability for costs of frivolous claims. He also congratulated the Minister for the speedy introduction of the legislation, and praised government efforts to enact the bill and put it into effect as early as next January.
“We are pleased with the government’s efforts to ensure that the product is affordable for our customers whilst at the same time recognizing the need for insurers to make a reasonable return on their capital,” Star indicated.
“As a result of these contemplated changes, the rate increases that we have been able to generate and the recent actions that we have taken to combat fraud, we are extremely optimistic that the Ontario Automobile Product will return to underwriting profitability. However, many of these changes will have little or no effect on our results in 2002 but we anticipate will have a significant positive impact in 2003”, he continued.
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