Yes, that's a good observation. In September 2010 the Gov't (not the insurance industry) changed the benefits included in the standard insurance product. Just prior to the reform, many insurers needed double-digit increases just to get the premiums back up to adequate levels. When the reforms were implemented, it was tough to estimate what the actual claims savings would be. Would lawyers (who were already meeting prior to the reform) figure out loopholes in the new Statutory Accident Benefits package? Would claims actually decrease? Companies had guesses, but no one knew for certain. At best, the reform helped to reduce the increases, which is a decrease of sorts (but the policyholder probably wouldn't see it that way). In other words, if it weren't for the reform, your insurance premiums would have increased more than they did. Not much of a consolationCorrect if I'm wrong but isn't that what just happened recently a few years ago. When the insurance industry promised us lower rates but in fact all we got was lower coverage. We now have an option to pay more for insurance to get the coverage we originally had.
Now, with that being said, the insurance reforms are now about three years old. I'm not sure what my competitors have seen, but my employer has seen some cost savings due to the September 2010 reform. As a result, we have decreased rates over 10 percent in the last year or so. Part of the Government's argument for the mandated decrease is that companies should now be reducing rates to reflect the cost savings of the reform. This is why I think the mandated decrease is unfair if it is applied to all companies equally, since my company has already voluntarily taken decreases. If we are forced to reduce rates just the same as our competitors who have not decreased rates in the last year, then my employer will probably be more reluctant to take voluntary decreases in the future for fear that the Gov't may mandate further decreases, pushing us into inadequacy.
Studies have shown that strict Gov't regulation actually increases premiums and makes them more volatile. Illinois insurance is completely unregulated and they enjoy some of the most stable and lowest premiums of the USA. North Carolina used to be regulated like Ontario and they ran into affordability issues just like Ontario. NC eliminated the regulation and went to a free market and their situation drastically improved to look more like Illinois. It seems ironic, but without regulation insurers can adapt to the market MUCH more quickly, and thus be more competitive with lower premiums.