ALLSTATE INSURANCE DROPS PARTS DISCOUNT DEMAND
Paint Re-Imbursement Up

January 2, 2008

The year 2008, has just barely started when Allstate Insurance forwarded a note to their PRO preferred shops in southern Ontario that effective New Year's day, Allstate Insurance would be changing re-imbursed pricing levels.

Announced by Victor Pasnyk at Allstate were:

Body labour rate: $50 per hour (same)

Paint re-imbursement rate: $27 per hour (up $2)

Paint material cap: DROPPED (new)

Appearance allowance: 20% can be charged by shop (new)

Mechanical labour rate: $72 per hour (up $2)

The biggest news was the announcement that Allstate would no longer demand, from their PRO shops, a 5-10 per cent discount allowance on parts used in the vehicle repair. A number of industry associations complained loudly in June of 2001, when Allstate first announced the parts discount demand.

"The dropping of the parts discounting demand is a positive step for shop profitability and has removed a possible sore spot in Allstate, Pembridge and Pafco Insurance companies and their relationships with their preferred vendors" says John Norris of the collision repair industry trade association. "Other vehicle insurers in the province are demanding parts discounting or looking at ways to lower their costs by removing parts profitability from shops, and we hope this positive step by Allstate sends a message that parts discounting is not to be part of the future for our industry."

State Farm® To Refund Ontario Policyholders

Aurora, Ontario, December 28, 2007

State Farm Insurance announced today it is issuing refunds to approximately 23,000 automobile insurance policyholders in Ontario as a result of an error in the application of the Graduated Licence Discount (GLD) and Driver Inexperience Factor surcharge (DIF). The DIF was introduced by State Farm in 1995 to work in tandem with the Graduated Licence Discount made available under the Graduated Licensing Program.

State Farm customers who are entitled to a refund will receive written notification beginning in January, 2008. Refunds including interest will be issued promptly and steps have been taken to correct the error. The average refund is approximately $120.00.

State Farm customers who receive a refund and require additional information should contact their State Farm agent.

"We apologize to our affected policyholders for any inconvenience this may have caused. State Farm discovered this error through an internal review, and promptly reported it to the Financial Services Commission of Ontario," said State Farm Senior Vice President, and Chief Agent, Bob Cooke. "We have worked quickly with FSCO, to resolve this matter to the satisfaction of our customers."

State Farm Insurance is the third largest auto insurer in Ontario and the fifth largest in Canada. State Farm is also the third largest property and casualty insurer in Ontario and the eighth largest in Canada. State Farm has been serving Canadians since 1938. State Farm's 507 Canadian agents currently provide insurance and financial services ranging from mutual funds and life insurance to vehicle loans and, home and auto insurance. For more information, please visit StateFarm.ca.

(SEE HEADLINES)

Auto Insurance Reforms In Ontario, Alberta And Atlantic
Canada Deliver $6.8 Billion In Savings

August 16, 2007

Toronto - Canada's home, car and business insurers announced today that consumers have enjoyed nearly $7 billion of auto insurance premium savings since insurance reforms were implemented in 2003 and 2004 in Ontario, Alberta, and Atlantic Canada. Today's analysis is based on the latest data available from the General Insurance Statistical Agency (GISA), a government body that collects data on premiums recorded for every private passenger vehicle in those regions of the country.

After nearly four years of declining auto insurance premiums (2003-2007) in provinces with private auto insurance delivery, Insurance Bureau of Canada believes it is important to provide both a summary and a regional breakdown of the premium savings that have been delivered to consumers.

"Reaching nearly the $7 billion mark is an unprecedented level of savings for consumers," said Stan Griffin, IBC's President and CEO.

"In every region of the country where insurers compete for the business of consumers, auto insurance reforms have delivered substantial savings for drivers. These benefits are the direct result of efforts by auto insurers and governments across the country to design and implement auto insurance reforms focused on the best interests of consumers," Griffin added.

Here is a detailed breakdown of the provincially-based reforms and the resulting savings to consumers.

Ontario

Average premiums in Ontario have decreased from approximately $1,499 per vehicle in November 2003 to $1,260 in June of 2007, a reduction of nearly 16 per cent for consumers.

Since November 2003, auto insurers have worked with the Ontario government to bring about these savings through the following key reforms.

• Getting people with whiplash related injuries into treatment faster, with fewer assessments, thus using health care resources more effectively
• Ensuring greater fairness among the fees of health care providers operating within different parts of the health care system
• Providing greater consumer protection against sometimes unscrupulous paralegal representatives
• Reinforcing that the purpose of auto insurance is to direct needed accident victims to treatment rather than cash settlements that may not be applied to rehabilitation
• Making sure that the focus of court access for further benefits is on claimants that have suffered serious and permanent injuries

"The savings we have seen in Ontario since the 2003 reforms represents the largest premium reduction ever seen in Canada," says Mark Yakabuski, Vice-President, Federal Affairs and Ontario, and incoming President, IBC.

"For Ontario drivers, it means an aggregate savings of $4.5 billion," he added.

Alberta

In Alberta, Canada's second largest private auto insurance market, reform efforts have provided savings for consumers of $1.13 billion. From the peak in 2004, when premiums were, on average, $1,182 to current average levels of $1021, prices have declined by nearly 14 per cent.

Reforms to Alberta's system included the following;

• a limit to the pain and suffering court awards ($4000) for minor injuries resulting from a collision, but more money allocated for the care required to return an accident victim to health. These reforms did not affect eligibility for health care benefits and income replacement coverage.
• Pain and suffering awards for more serious injuries remain unchanged.
• A direct-to-insurer billing system that permits injured accident victims to obtain treatment with no delays.
  

"While Albertans across the board benefited from these savings, the reforms featured a strong focus on young drivers, arguably the most notable beneficiaries of these identified savings." said Jim Rivait, VP, Prairies, Northwest Territories and Nunavut, IBC.

Atlantic Canada

Total savings available to consumers in Atlantic Canada amounted to $1.17 billion.

According to Don Forgeron, Vice-President, Atlantic, IBC, these savings are a direct result of auto insurance reform efforts that focused on rising pain and suffering awards for minor injuries. Governments in Nova Scotia, New Brunswick and PEI introduced a limit of $2,500 for the compensation paid out as pain and suffering awards for minor injuries sustained in a motor vehicle collision. As was the case in Alberta, these reforms did not affect access to health care benefits or income replacement coverage available to all accident victims. Pain and suffering awards for more serious injuries were also not affected by the reform legislation.

Nova Scotia

In Nova Scotia, reforms saw premiums drop from an average of $1,048 in November 2003, to $800 in June 2007, an average reduction of nearly 24%, representing cumulative savings of $426.3 million for consumers.

New Brunswick

In New Brunswick, auto premiums have dropped significantly from an average high of $1,259 in 2003 to current average of $797.

This is a reduction of nearly 37% as a result of government reforms introduced in 2003 and 2006 providing savings of $493.5 million. In addition, government introduced a first-chance discount to give young drivers a break on their coverage as long as they maintain a clean driving record. New Brunswick drivers receive one of the best insurance deals in Canada: generous no-fault accident benefits coverage, access to the courts for serious injuries and low premiums.

Prince Edward Island

In Prince Edward Island, peak premiums in 2003 of $881 have since dropped as a result of government reform efforts to an average of $745, resulting in savings of $27.9 million for Island drivers or nearly 15.5% less than at the peak.

Newfoundland and Labrador

Changes in Newfoundland and Labrador have also achieved significant savings for drivers. Auto insurance premiums have declined, on average, from $1,126 in 2003 to $887 as of June 30, 2007, a reduction of 21%. Drivers have realized savings of $221.8 million in the last four years.

"With these savings of the last few years, it is evident that Atlantic Canada drivers continue to benefit from some of the lowest auto insurance premiums in Canada," said Don Forgeron.

Savings are based on the difference between the highest premium value in 2003 (or 2004 depending on when reforms were introduced) and the lowest premium value each year multiplied by the number of vehicles for the corresponding year.

Insurance Bureau of Canada is the national trade association of the private property and casualty insurance industry. It represents more than 90% of the non-government home, car and business insurance in Canada. To view news releases and information, visit the media section of IBC's website at www.ibc.ca.

For more information: John Karapita (416) 362-2031 extension 4351

In Ontario, contact Mark Yakabuski, VP, Federal Affairs and Ontario, and incoming President (416) 362-2031

In Atlantic Canada, contact Don Forgeron, VP, Atlantic, (902) 429-2730

In Alberta, contact Jim Rivait, VP, Prairies, Northwest Territories and Nunavut, (780) 423-2212

In British Columbia, contact Lindsay Olson, VP, British Columbia and Yukon, (604) 684-3635

In Quebec, contact Daniel Demers, VP, Quebec, (514) 288-1563

(see headlines)

"More than 80 per cent of the total cost of all injury claims is covered by basic insurance," said Paul Taylor, ICBC's president and CEO. "That's where the cost pressures are and this will affect premiums for basic coverage."

"So far this year, ICBC has invested $29 million in various road safety and other loss management programs to help keep insurance rates low and stable," said Taylor , "but ICBC can't do it alone. The biggest single thing that customers can do to keep their premiums low is to do their part in preventing crashes. Claims costs are the biggest driver of insurance premiums.

Insurance premiums earned for the nine months ended September 30, 2006 increased to $2.43 billion, from $2.34 billion for the same period in 2005. This reflects the 6.5 per cent increase in rates for basic insurance that came into effect earlier this year, as well as the $100 million reduction in rates for optional coverage that was implemented in 2005. In addition, the number of insured vehicles on the road has increased by over 3 per cent.

Net claims costs for the first nine months of 2006 were $2.03 billion, which represents a 7.4 per cent increase over the same period in 2005. This includes a $93 million increase to reserve for prior years' claims.

One area of good news is the decrease in claims costs related to auto theft; due to the success of the Bait Car program and other ICBC-funded initiatives. Claims costs for auto theft in the first nine months of 2006 were $43 million, down from $53 million for the same period in 2005 and $58 million in 2004.

ICBC's expense ratio in 2005 compares very favourably with other property and casualty insurance companies. Low operating costs are another way that ICBC helps keep insurance rates low and stable.

ICBC's investment income continues to be strong. Income produced by ICBC's investments will mean the average premium this year is more than $175 lower than it would be otherwise.

(courtesy CollisionWeek)(see headlines)

Royal & SunAlliance started the 2006 year off strong with a combined operating ratio (COR) for the core Group of 91.6% and 95.8% for the Canadian operation, which represents almost a three-point improvement over Q1 2005.

In addition Royal & SunAlliance Canada saw an increase in its underwriting profit of 50% to $18 million. While its net written premiums increased in Q1 2006 by 11%, reaching $287 million. The Company says this spike was driven by a retention rate of 87% and profitable growth in both commercial and personal insurance.

In Canada, Royal & SunAlliance also reports an increase of 50% in new business from newly appointed brokers since 2004. Royal & SunAlliance Canada has subsequently appointed another 29 brokers in the Q1 2006.

The Core group has also enjoyed increases in its operating result from $95 million (£47 million) in Q1 2005 to $418 million (£207 million) in Q1 2006.

This result, Royal & SunAlliance, notes is underpinned by underwriting discipline, claims management and a focus on operational excellence.

Profit after tax for the Company was $246 million (£122 million), a figure that is in line with the results from 2005 which included a one-off benefit from the sale of the Company's Japanese business.

In addition, Royal & SunAlliance says it has delivered $505 million (£250 million) against its targeted expense savings.

In addition, the Company's Core Group underwriting result is up 13% to $143 million (£71m).

(Canadian Underwriter)

(see headlines)

The first quarter of 2006 brought strong results for ING Canada Inc. (TSX: IIC.LV) with a net income to $185.9 million, representing a 17.3% increase from $158.5 million the first quarter of 2005.

Revenue also increased to $1,133.8 million, up 3.2% from $1,098.8 million in the comparable quarter of 2005.

Earnings per share for Q1 2006 amounted to $1.39, compared to $1.19 for the corresponding period in 2005.

ING Canada also declared a quarterly dividend of $0.25 per share on its outstanding common shares, payable on June 30, 2006 to shareholders of record on June 15, 2006.
Claude Dussault, president and CEO of ING says the Company's investment results improved as a result of favourable fixed income and equity market gains.

"Our underwriting results benefited from improvements in claims frequency and severity and although prior year claims development was less favourable compared to last year, it was once again strongly positive in the quarter," Dussault says. "In addition, our total number of insured risks continued to increase, mitigating the impact of reductions in insurance rates."
Currently ING reports that it anticipates that top line growth for the P & C insurance industry will remain below historical levels for 2006. Additionally depleting ING anticipates is underwriting.

The Company also says commercial insurance will continue to be competitive adding that "while prices are softening, returns are expected to remain above historical evels."

(Canadian Underwriter)

(see headlines)

Monday, April 03, 2006 - Toronto

ING Canada (TSX:IIC.LV) announced today the acquisition of Grey Power Insurance Brokers Inc. (GPIBI) of Stouffville, Ontario.

With approximately $68 million in annual premiums, five satellite offices in Ontario and about 100 staff, GPIBI is the largest member in the Grey Power network, accounting for about 50 per cent of its business volume. The Grey Power network is dedicated to serving the home, automobile and travel insurance needs of those 50 years of age and older.

The Grey Power network consists of eight separate brokerages with a total of 14 offices in Alberta, Ontario and Nova Scotia. Grey Power insurance products are underwritten by the Trafalgar Insurance Company of Canada, which ING Canada acquired as part of its acquisition of Allianz Canada in 2004. At that time, the Grey Power network was comprised of five independent brokerages and three owned by Allianz Canada. With its acquisition of GPIBI, ING Canada now owns four of the eight Grey Power brokerages.

The transaction is not expected to have any immediate impact on the staff or operations of GPIBI. One of GPIBI's founding principals, Ron Griffiths, will continue to act as President, and the company's management team and staff will remain unchanged.

"We're very pleased with this transaction," said Mr. Griffiths. "We expect both clients and staff to derive benefits through this direct association with ING Canada, which has clearly established itself as a leader in our industry. We look forward to growing with them".

Trafalgar Insurance Vice President Catherine Smola added, "GPIBI will be well positioned to capitalize on ING Canada's strengths, such as exceptional underwriting and claims management, as well as marketing, actuarial and IT support. Access to these resources will certainly enhance the value offered to Grey Power's unique and growing client base. We're making this investment because the Grey Power brand is a valuable asset with a promising future."

ING Canada is the largest provider of property and casualty insurance in the country, offering automobile, property and liability insurance to individuals and businesses through its insurance subsidiaries.

(see headlines)

Good news from the insurance side: George Cooke, president and CEO of The Dominion of Canada General Insurance Company, says auto claims frequency bottomed out in 2005 and has started to increase in most jurisdictions.

Cooke was a guest speaker at the Canadian Collision Industry Forum (CCIF) meeting in Mississauga, ON, on Jan. 21.

He acknowledged that consumers had become quite disillusioned with auto insurance claims, and that claims frequency had been declining for a few years. "Somewhere between the second and third quarters of 2005, frequency not only bottomed out, it started to increase," Cooke said.

He noted that a number of companies implemented "accident forgiveness" programs, and that consumer confidence is now returning. Accident forgiveness programs generally permit policyholders to claim their first at-fault accident without any impact on their premiums.

Cooke believes rising consumer confidence and programs such as accident forgiveness will help to shift the balance of collision repairs back toward insurer-paid claims, and will prompt higher repair volumes as well.

(courtesy www.bodyshopbiz.com)

(see headlines)

No-fault insurance is an oxymoron. Fault is determined in every accident, using the Fault Determination Guide as set out in the Insurance Act. To view the Fault Determination Rules, click below:

http://www.insurancehotline.com/scripts/insquote.pl?instype=rr18_2

No-fault insurance actually means that if you get in to an accident, regardless whether or not it's "Your Fault", your own insurance pays for the damage to your vehicle and for your injuries. No-fault insurance was created to increase consumer satisfaction with claims handling, as you only have to deal with your own insurance company, not somebody else's company when paying for your damages.

Accident Forgiveness
(Can not be bought - it can be applied if the insurance company wishes to use it)

Absolute forgiveness - no increase whatever in premiums after an at-fault claim - is available to the best drivers from some companies at no additional cost.

But most companies will increase premiums after the first at-fault claim in five or more years. Most insurers which offer accident forgiveness make their clients do penance. They drop the policyholder to a lower claims-free or star rating, which will result in an increase in premiums for several years. The increase is simply less than drivers would suffer if their insurers demoted them to a zero star or zero claims-free rating.Some will raise premiums by more than 50 per cent.

Further claims, or a combination of claims and convictions for driving infractions, could result in the insurer refusing to renew your policy.

Convictions for driving infractions can affect a policyholder's right to what insurers call accident forgiveness, as well as the ability to buy the optional claims protection feature.

"Good drivers" should get a break and not be saddled with large premium increases after a small claim. Always check to make sure you are getting the best rate out there by going to www.InsuranceHotline.com.

Claims Protection
(It can be bought - it's also called Premium Protection or Accident Waiver )

Most insurers will sell drivers claims or premium protection. The majority of drivers would qualify to buy it, but many have not bothered. This protection would allow you to maintain your "good standing" with your insurance company after an at-fault accident. The cost is usually around $35 to $50 dollars, which is like "buying insurance for your insurance."

This means your renewal after an at-fault accident will show the same star rating and there will not be an increase in premium, as a result of the claim.

The claims protection is usually removed immediately after the claim and a second accident would not have this protection. Further claims, or a combination of claims and convictions for driving infractions, could result in the insurer refusing to renew the policy. In some cases, claims protection will entitle the policyholder to an extra at-fault claim before the insurer will refuse to renew the policy. This protection could disappear, however, if the policyholder reported an at-fault loss even if he or she paid for the damages personally.

Here's which Insurance Companies offer Accident Forgiveness and Claims Protection

There is NO clear delineation of what an insurer can and cannot do to you with regards to Accident Forgiveness or Claims Protection. "A uniform standard of forgiveness would undermine the stated goal; to foster a more competitive market" reports the Finance Minister Greg Sorbara. Personally, I don't agree with the Finance Minister on this one, says Lee Romanov.

Here is the most comprehensive chart available indicating which insurance companies offer Accident Forgiveness or Claims Protection and their conditions:

http://www.insurancehotline.com/scripts/insquote.pl?instype=rr18_3

( Courtesy of Lee Romanov, insurancehotline.com )

(see headlines)

The furious debate over how much Ontarians really pay for auto insurance reached one conclusion yesterday -- consumers should shop around.

The Canadian Consumers' Association reported yesterday that Ontario's rates are, on average, 45 per cent higher than in British Columbia. And while Hamilton drivers pay the lowest rates in the Greater Toronto Area, their premiums are still far higher than in other Ontario cities. You can usually find a better deal. The Consumers group study almost 4 million quotes for insurance.

"Most drivers find the average company, rather than the lowest rate," sys Lee Romanov, founder of the Consumers' Guide to Insurance. She said most insurance agents and brokers are tied to just four or five carriers and some handle just one or two. That means many consumers aren't finding the best deal.

Bruce Cran, president of the Consumers' Association of Canada, said owners in Ontario are getting burned.

He says studies show a third of Ontario's car accidents aren't reported to insurance companies

"Consumers in Ontario have been clearly harmed by outrageous price increases for auto insurance over the past three years," says Cran, whose group released a report comparing rates in Ontario, Alberta and British Columbia.

Mark Yakabuski, vice-president of the Insurance Bureau of Canada, said the consumers report shows that there are outlets among Ontario's 150 insurers that offer comparable rates to the British Columbia's government-run monopoly.

"What I want to encourage people to do is indeed take advantage of what we have here in Ontario, a very competitive market," Yakabuski said.

"Look at the many, many other choices that you have before you make your final decisions as to whether you want to go with this company or that company."

The two sides did not agree on much else.

By studying close to four-million quotes in Ontario, the association concluded the province's average insurance premium is $2,384, compared to $1,325 in British Columbia and $1,715 in Alberta.

But Yakabuski says the real number is more like $1,279 and that rates have fallen by 15 per cent -- about $200 a vehicle -- over the past 18 months.

He said the consumers report didn't take into account discounts offered to customers with more than one car, home insurance policies with the same company or rewards for being a loyal customer.

The Ontario government, which pledged to reduce auto insurance rates when they were elected in 2003, also presented numbers in line with industry figures.

The average Ontarian paid $1,391 for insurance in 2004, with 2005 rates projected at $1,379, a finance ministry spokesman said yesterday.

Beyond the provincial differences, the consumers report found vast gaps between premiums paid in Ontario cities.

Hamilton car owners pay almost $600 less for insurance than some drivers in the Greater Toronto Area but more than those in Guelph, London, Ottawa, Windsor and 21/2 times more than drivers in Victoria, B.C.

Perhaps even more eye-popping is knowing that the same driver with one ticket and one accident can pay between $2,051 and $17,468 for insurance in Ontario.

The Ontario government released those numbers in its 2005 rate guide for insurance in February. It showed a 19-year-old driver with a clean record could pay anywhere from $5,750 to $15,551 and a 40-year-old with no accidents or tickets pays between $1,763 and $6,992.

Romanow says many companies charge huge rates for business they aren't really interested in having.

"Basically, the company is saying, 'Go away, we don't want your type of business.' Instead of knocking on your door and telling you to your face, they set these huge rates."

But some consumers are paying that premium, perhaps out of a misguided sense of loyalty to a particular company or the belief they can't do any better. She said everyone should compare their premiums every time their renewal comes up.

"Ontario is paying 45 per cent more than B.C. because people aren't getting the low rates. Consumers really need to wake up."

Yakabuski defended Ontario's free-market system, saying the province's claims payout is "enormously more generous" than those in British Columbia. The average claims payment, including injury and property damage, is close to $9,000 in Ontario and less than $2,400 in B.C., according to the bureau.

Yakabuski says Ontario's auto insurers paid out $1.5 billion in health-care costs, $3 billion in vehicle repairs and $1.6 billion defending people being sued.

Cran counters payouts are higher in Ontario because a $30,000 deductible on personal injuries wiped out any small claims, and Ontario drivers are "scared out of their tree about reporting fender-benders."

He says studies show a third of Ontario's car accidents aren't reported to insurance companies.

Yakabuski also said the availability of insurance has improved dramatically. In March 2004, there were more than 226,000 vehicles insured through Facility Association -- the last resort for drivers who can't find regular coverage.

Last month, that was down to 36,868.

"Premiums can drop from $5,000 a year to $1,700."

For a copy of the Consumer's Association report, see here:

Thanks to mmacleod@thespec.com 905-526-3408 with files from The Canadian Press

AVERAGE ANNUAL AUTO INSURANCE RATES BY CITY

York $3,124
North York $3,005
Etobicoke $2,966
Toronto $2,950
Scarborough $2,912
East York $2,867
Brampton $2,788
Thornhill $2,735
Mississauga $2,718
Hamilton $2,537
Windsor $2,378
London $2,246
Kitchener-Waterloo $2,157
Guelph $2,150
Barrie $2,147
Ottawa $1,971
Kingston $1,934
Edmonton $1,865
Calgary $1,753
Vancouver $1,493
Victoria $944

(see headlines)

Ontario drivers are paying up to 45 per cent more for auto insurance than their counterparts in British Columbia, according to a study by the Consumers' Association of Canada.

The average annual rate in Ontario is $2,383, compared to $1,324 in B.C., suggests the study. And those same results were found not only in Toronto, but also in cities such as Sudbury, Windsor, Guelph and London.

"Consumers in Ontario have been clearly harmed by outrageous price increases for auto insurance over the past three years,'' said association president Bruce Cran in a statement.

However, the Insurance Bureau of Canada disagrees. It says that premiums in Ontario are $1,279, and that premiums are down 15 per cent since November 2003.

"Clearly, free market, private competition is alive and well in Ontario," said Mark Yakabuski, the vice-president of IBC.

He added that the average claim paid out in Ontario is $8,878. compared to $2,391 in B.C., where the product is delivered by a government monopoly.

"Very simply, you get a lot more for your money in Ontario," said Yakabuski.

Cran disagrees. He said: "Victims of crashes have also been impacted by the Ontario government's actions of imposing a $30,000 deductible on benefits paid to them."

"Innocent victims of crashes have suffered at the hands of the insurance industry while this industry continues to put billions of dollars of profits in its pockets.''

Cran blames the high premiums on so-called independent brokers, who are choosing only to sell products from one or two insurance companies.

"An overwhelming compelling message has emerged from the Study for consumers in Ontario," said Cran. "Shop widely among many brokers and use the Internet to find the lowest auto insurance quote."

(see headlines)

In Ontario, 59 per cent of individuals with auto insurance are unsure how insurers are calculating their rates and may therefore be unintentionally paying higher premiums, according to a recent President's Choice Financial®/Ispos Reid Survey.

In addition, 64 per cent with auto insurance exhibit interest in researching alternative insurers based on price and product comparison. However, the survey found that this response decreases with age with only 53 per cent of respondents aged 55 and older likely to shop around as compared to 77 per cent of those aged18 to 34. Women are seven per cent more likely than men to investigate alternative insurance providers.

"Added benefits like 24/7 hassle-free claims service, a disappearing deductible, or discounts for applying online all add to better consumer value," Geoffrey Wilson, senior vice president, investor relations and public affairs of Loblaw Companies Ltd., says.

A disappearing deductible is a unique feature that rewards drivers with a reduction on their deductible for a pre-determined claim-free period, therefore after a set amount of time with a clean driving record the deductible will disappear completely.

According to the survey, 90 per cent of insureds view a disappearing deductible as a "real benefit" and 82 per cent say it may help them determine which provider to sign with.

The findings reflect results of an Ipsos-Reid poll conducted from March 22 to March 24 and March 29 to March 31, 2005. The survey was conducted based on a random sample of 840 adult Ontario residents who had auto insurance at the time of the interview. Data was weighted to ensure a regional and age/sex composition representative of the Canadian population according to the 2001 Census. (courtesy BODYSHOP magazine and www.bodyshopbiz.com)

(see headlines)

By LINDA LEATHERDALE, BUSINESS EDITOR

READ THIS and try not to drive into the ditch. Because Lord knows, an accident will cost you more than an arm and a leg.

ING Canada yesterday kicked off a new round of record profits for insurance firms, reporting a fourth-quarter profit of $173.1 million, up a whopping 600% from its $24.7 million quarterly profit a year ago.

Revenues for ING, which went public in December with an IPO, climbed to $1 billion, compared to $808 million in the fourth quarter of 2003.

Today, expect a gusher of best-ever profits as the Insurance Bureau of Canada reports 2004 results. Even without fourth-quarter revenue, insurers had already raked in a record $2.7 billion for the first nine months of 2004 -- beating a $2.2-billion record profit in 2003.

Meanwhile, motorists are bitterly complaining they haven't received the promised 10% rollback in skyrocketing premiums, which Queen's Park says it has delivered.

SENATE HEARS GRIPES

And in Ottawa yesterday, small businesses complained to a Senate banking committee that runaway insurance costs and abusive practices are killing them.

"Insurance is still enemy No. 1," said Catherine Swift, president of the Canadian Federation of Independent Business (CFIB), which is demanding more consumer protection and transparency from Canada's insurers.

In her testimony, Swift warned: "The livelihoods of thousands of small business owners, professionals and their employees are being threatened by skyrocketing business liability insurance premiums, and drastic reductions in insurance coverage and availability for many small businesses."

Bruce Cran, president of the Consumers Association of Canada, reacted to ING's profit by saying: "I find a 600% hike in profit absolutely obscene. It comes from the backs of consumers aided by provincial governments who have been hoodwinked into installing caps and thresholds."

This raging issue just won't go away -- even though the Liberals at Queen's Park want us to believe they've fixed the madness with their promised rollback in auto premiums, which went through the roof in 2001, 2002 and 2003.

INDUSTRY CHEERLEADERS

With industry cheerleaders calling it "unprecedented savings" for motorists -- Finance Minister Greg Sorbara last month proudly announced an average premium rollback of 10.6% for 2004, including a 6.08% drop in the fourth quarter. That followed a 14.09% hike in premiums in the fourth quarter of 2003, and a 15.67% hike in 2002.

According to Sorbara, average premiums fell from $1,499 to $1,319.

But in exchange for this so-called rollback, motorists are getting less, with higher collision and comprehensive deductibles and a scaling back of benefits.

Now, here's what Sun readers have to say:

"The Fiberals lied again," writes R.J. Peterson, of St. Thomas, who just received his renewal rate, effective March 1, which jumped to $1,541.91, up from $1,508.01.

He went on, "Here we are with the same cars that are another year older, same drivers that are another year older, and NO change in driving records and we are getting ripped off again."

Rob Poolman writes: "I can't believe Greg Sorbara can still stand up in front of the public and continue to lie about our insurance rates going down." Poolman's insurance just jumped another $100, even though he has a perfect driving record.

HIS RATES HAVE JUMPED

Gary Taylor, of Barrie, said his new motorcycle insurance bill just arrived, and it's up $30. "When I phoned my company and said I expected a decrease, they told me the government approved the rate."

Mark Slobodian e-mailed me to say his auto and home insurance rates have jumped an average of 50% in the past four years, even though he has a spotless record and has increased his deductibles while lowering his liability. "If the insurance companies are crying expenses are going up, then their profits should in no way be skyrocketing as they are."

Julie writes to complain her auto insurance jumped another $100 in January, even though she drives a 1998 Taurus with only 50,000 km on it, and she has no accidents or tickets.

Dennis DesRosiers, president of DesRosiers Automotive Consultants, said the cost of insurance is the No. 1 reason why consumers are not buying more new vehicles, which is hurting our auto industry.

Needless to say, I can't wait to hear the industry spin today.

(courtesy of the Toronto SUN)