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    • Ontario auto reforms; Claim cost savings hinge on guidelines
        (Copyright Thompson’s World Insurance News
        Not to be redistributed by individual recipients.)
         A number of the Ontario auto reforms have the potential to produce significant reductions in accident benefits claim costs, Baron Insurance Services principal Ron Miller writes in the latest edition of the MSA/Baron Outlook Report.
        But he said it is hard to say for sure until new minor injury guidelines for the reforms are released.
        If history repeats itself, he wrote in an article titled ‘Ontario auto — the seven year itch,” after the reforms come into force in September the industry might expect to see an immediate and significant reduction in several of the major components of accident benefits claim costs coupled with a reduction in trend for two or three years.
        And if history does repeat that will be followed by a significant increase in trends thereafter as stakeholders come to find and exploit the soft spots.
        “Where there is change, there is opportunity,” Mr. Miller said.
        “But for which stakeholders is such opportunity the greatest here and how fast should we expect to see it exploited?
        “I have no doubt that we will be seeing yet another five-year review with further substantial reforms in due course.” It is his expectation that the cost of most of the new optional benefits will be significant to the average consumer, and if history is any guide here, he would not expect many insureds to take these up.”
        The complete article is available in the fourth quarter 2009 edition of the MSA/Baron Outlook Report. For subscription information or pricing visit www.msaresearch.com/outlook/
        More in our May 3, 2010 edition
        
    		 


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