A measure that brokers once celebrated as a consumer-friendly way to lower premiums has come under fire by a prominent MPP and party leader.
Hours after Finance Minister Charles Sousa announced that Ontario was “moving forward” with its plan to mandate that all insurance companies offer a discount to drivers who install winter tires on their vehicle, critics have emerged to label the initiative as nothing but a political ploy.
Victor Fideli, Progressive Conservative finance critic, believes that the Liberals never intended to cut insurance premiums by 15%, but used that campaign promise as a way to “buy off the NDP,” according to the Canadian Press.
"It was a hollow plan," Fedeli told the CP. "It was only words and never backed up with any action."
He contends that if the winter tire discount was actually designed to reduce auto insurance premiums, then the Ministry of Finance would have clarified details around it.
"You would think that if you were serious about mandating a cut, you would know the percentage," Fedeli said. "It's more gimmicky than anything."
The NDP also criticized the failed attempt to drop rates by 15%, alleging that insurance companies saved more than $1 billion as a result of the regulations, but those savings never cascaded down to consumers or their intermediaries.
“They've consistently lowered the cost for insurance companies without making sure premiums actually go down," said MPP Jagmeet Singh. "So they've given insurance companies all these cost saving tools, cut their costs in so many ways, but there hasn't been any proportional reduction in premiums.”
