A - Marshall

Question 1

MARSHALL

For ON auto insurance, benefits are fair but are not delivered fairly.

4 CAUSES of unfair delivery of auto insurance benefits in Ontario.

Answer 1

1. COST CONTROL AT THE EXPENSE OF CARE
   
   • Insurers emphasize cost control instead of care
   • But then victims do not recover and final costs are higher not lower
2. LAWYERS
   
   • Lawyers’ contingency fees are a percent of the settlement
   • So lawyers seek higher settlements, not better care for victims
3. ENTITLEMENTS
   
   • Victims seek to maximize entitlements versus addressing own care needs
4. VOLUME
   
   • Providers are paid on volume of treatment not results

Question 2

MARSHALL

5 actions items in Ontario’s five-part ACTION PLAN for addressing the unfair delivery of benefits.

Answer 2

1. STRUCTURAL FLAWS
   
   • Fix structural flaws by appointing an arms-length regulator with powers to enact policies and procedures
2. CAT INJURIES
   
   • Change compensation system for cat injuries because lawyers are taking too big of a chunk
3. CARE NOT CASH APPROACH
   
   • Focus on timely, appropriate medical care, not cash payouts
4. LAWYERS
   
   • Make contingency fees transparent (and simplify benefits so there is less need to hire lawyers)
5. SMART REGULATION
   
   • Allow insurers more regulatory freedom to compete on price and service

Question 3

MARSHALL

What is the opportunity gap in Ontario Auto Insurance?

What is the value gap in ON Auto Insurance?

Answer 3

• Opportunity for ON Auto Premium much higher than canadian avg. Could be much lower without impacting quality
• The VALUE of medical care could be better if there were more focus on active medical management