A new report says that Ontarians overpaid for auto insurance, by $840 million dollars in 2013 alone.
Adam Wagman spoke with Scott Thompson of CHML Radio
report of the auto insurance industry by two professors at York University’s Schulich School of Business, Fred Lazar and Eli Prisman.
The professors concluded that Ontario consumers may have overpaid for auto insurance by as much as $4 billion between 2001 and 2013, with excess fees amounting to $840 million in 2013 alone. According to their report, Ontario’s insurance regulator has set a profit benchmark for the industry that’s far too high “given today’s low interest rate environment.” And insurance companies were given a further break through an over-estimate of their operating costs. The regulator has apparently failed to consider the impact of online resources, and other technology, that allow these firms to reach consumers more cheaply than in the past.