The government in Ontario has named a new advisor for auto insurance and pensions, with David Marshall set to assume the position on February 1, 2016. The government says among Marshall’s chief tasks will be to find ways to reduce auto insurance costs in Ontario, which has the highest premiums in Canada.
Marshall takes the position with plenty of experience in the insurance industry, serving as President and CEO of the Workplace Safety and Insurance Board (WSIB) in the past. He held that role for the last six years and before that the government says he worked in various public and private sector jobs, including as Vice Chairman of CIBC in the banking industry.
Previous government roles for Marshall have been frequent as the current regime points out:
“Marshall has served as Assistant Auditor General of Canada, Assistant Deputy Minister at Revenue Canada, Assistant Deputy Minister at Employment and Immigration Canada, Deputy Receiver General and Deputy Minister of Public Works and Government Services.”
In the new position Marshall will provide advice and recommendations to governing and regulatory bodies in an effort to reduce auto insurance costs in Ontario, while the role also involves him overseeing the roll out of the Ontario Retirement Pension Plan (ORPP).
Marshall will have to act quickly to reduce auto insurance costs as his position is only held for a single year, although the government says the role can be extended thereafter.
The reduction of auto insurance costs in Ontario is seen as a major task, considering all the challenges faced to reach that goal. Canada’s most populous province is home to a massive amount of drivers, 9.3 million in fact, and the city of Toronto is a magnet for high premiums, with nine of the most expensive places to insurance a car in Canada found in the Greater Toronto Area.
On top of that, Marshall will have to contend with fraudulent activity that is described by insurance companies and regulatory bodies alike as rife. Indeed, recent studies have found that auto insurance fraud in Toronto alone accounts for $2 billion in false payout by insurance providers. This added risk ultimately gets put onto the premiums of every consumers, with data showing premiums could fall on average $225 across Ontario is fraud was eliminated.
How Marshall and his team will tackle those issues remain to be seen, but the consensus almost across the board is that the private and public sectors will have to work together to find a solution.
SOURCE: Ontario Government