FOR IMMEDIATE RELEASE
November 1, 1004
Consumers’ Association of Canada Calls On Ontario Government to Launch Public Inquiry Into Insurance Industry
The Consumers’ Association today called on the Ontario Government to protect consumers and businesses by calling a public inquiry into the practises of the insurance industry. “For the last decade regulators and politicians have sat back and done nothing to protect consumers from practises such as the exercise of secret commissions to pervert competition in the marketplace”, said Mr. Cran, President of the Consumers’ Association of Canada. “What is needed is for the Ontario Government to fully investigate the practises of this industry and the harm inflicted on consumers and businesses.”
Mr. Spitzer, New York’s Attorney General, has indicated his investigation into what he has called "widespread corruption" in the insurance industry is in its early stages. “It is incomprehensible that while the Attorney General of New York State is conducting a wide ranging investigation of the practises of the insurance industry, the Ontario Government has done nothing except ask the industry to voluntarily disclose secret commissions to consumers”, said Mr. Cran. “This is an affront to consumers”.
In the last week whistle blowers have approached the Consumers’ Association with inside stories on the practises of insurance companies and brokers designed to subvert fair play and competition in the marketplace. “Consumers are the big losers in these kick back schemes. Ontario’s Consumers have lost trust and confidence in this industry as well as their faith in their Government watchdogs”, said Mr. Cran.
The big untold story that needs a full investigation is how much harm these commissions and other practises have done to consumers and businesses. A number of US states including California, Minnesota, New York and North Carolina are now conducting formal investigations of insurance companies and brokers.
In Ontario, the Government is silent. It’s high time they took action to protect consumers by instituting an independent public inquiry of the insurance industry.
For more information, contact:
Mr. Bruce Cran
Telephone: (604) 454-7827