TORONTO, Jan. 9, 2004 - Insurance Bureau of Canada (IBC) is pleased with the actions announced today by the Ontario government to reform the auto insurance system.

The government announced that it would take a number of steps to reduce insurance claims costs, including capping fees charged by Designated Assessment Centres and strengthening the protocols developed to provide timely treatment of whiplash injuries. It also announced that auto insurers will be required to file new rates by January 23rd.

"We are particularly pleased that the government will lift the legislated freeze on auto insurance rates as of January 23rd," said Mark Yakabuski, IBC's Ontario Vice-President. "Allowing the market to work freely is fundamental to restoring stability and availability in the auto insurance sector," he added.

"Insurers are committed to filing new rates to take into account today's announcement. Any savings generated by these measures will be passed on to consumers," Yakabuski said.

Today's actions will be especially helpful in controlling the rising costs associated with automobile accident injuries. "Sharply escalating costs for health care and for lawsuits are the main factors that have pushed auto insurance premiums up over the past couple of years. Bringing these costs into line will help insurers give drivers a significant break in the months to come," Yakabuski said.

The industry is committed to working with the government to ensure the quick implementation of the measures announced today and to take any additional action necessary to restore health to the auto insurance sector. "With the actions announced by the government today, we can look forward to an improvement in the affordability and availability of auto insurance in Ontario. And that's good news for consumers," Yakabuski added.

Most drivers will see reductions from current approved rates in the months to come. "The exact savings will vary among drivers, depending on their driving record and other factors," said Yakabuski, "and each company will have to take into account its own financial situation in filing for new rates."

Insurance Bureau of Canada is the national trade association representing private property and casualty insurers. Its member companies account for more than 90% of the non-government home, auto and business insurance in Canada.