By: Luke Jones, Published on February 27, 2018 04:15 PM, Last Update on February 27, 2018 01:16 PM
RSA Canada is the latest major insurance carrier to throw its support behind the report into Ontario’s auto insurance problems published by David Marshall last year. The head of the company says the report was an “excellent job” explaining the issues facing the province in the auto market.
“I don’t think there is an auto system in Canada that right now is working for insurers,” Martin Thompson, president and CEO of RSA Canada said Thursday. “And I would argue in many cases is not working for consumers as well.”
Thompson was speaking during the RSA Group’s financial results last week, which saw the company suggest it will raise auto premiums across Canada. RSA cited rising claims repair costs and distracted driving for such an increase, following similar declarations from Intact Insurance and Aviva Canada.
Speaking about the Fair Benefits Fairly Delivered, published by David Marshall, former CEO of the Workplace Safety Insurance Board. He made 35 recommendations to aid the Ontario auto insurance market, focusing on changing the auto insurance accident benefits system.
“We would wholly endorse all of the recommendations in the Marshall report,” Thompson said during the call, adding Marshall “did an excellent job in outlining the challenges with Ontario’s auto system.”
Thompson said Thursday he does not think changes recommended in the Marshall report will be implemented until FSRA is up and running.
RSA Canada officials “are perhaps slightly frustrated at the pace” of implementing Marshall’s recommendations, he added.
“The real problem with catastrophic compensation in Ontario is that it stems from the fact that you can give a lump sum to a person who is catastrophically injured and then forget about them,” said David Marshall, at the Insurance Brokers Association of Ontario annual convention last October.
Marshall was tasked by the Ontario government to review the auto insurance market in the province. His report – Fair Benefits Fairly Delivered – was released April 11.
David Marshall has previously said the “main cause” of high Ontario auto insurance costs “is not inefficiency, or excess profits by insurance companies or the behavior of claimants, providers or lawyers,” Marshall said in his report. “It is the way the system is structured.”
“In many ways, the need to have lawyers involved to negotiate settlements in what should be a straightforward, no-fault, accident benefits system signals a failure in the system,” he wrote.
“There should not be so much uncertainty that neither accident victims nor insurers are confident as to what constitutes fair benefit,” Marshall added.