The fact of the matter remains that we have the highest car insurance rates in the country, possibly even the continent and that's even with the recent reduction in minimum coverage. We are the extreme. Maybe this legislation is poorly thought out, but things are bad enough that extreme response were inevitable.
In the same way, maybe Verizon will be good for Canada's cellphone market, maybe it will actually turn out very badly, but very very few people in this country have any sympathy for the cell phone companies. Ontario's car insurers are in the same boat. No sympathy. That makes such companies big fat targets for politicians looking to score easy points. Once a company is hated enough, no amount of lobbying will save them. There is in fact good financial value in being a well-loved businesses, though many big companies have forgotten this or deemed it "impractical".
If companies allow things to become that bad, then I'm afraid I have no sympathy for them. If fraud is a big expense (and it is), then hire more investigators, offer competitive rates to clients using dash cameras, work more closely with each other than is down now, take any other measures that might knock the fraud rates down, or - god forbid - offer significant rate reductions on their own. Sure, those cost money and trouble, but the alternative is what we have now. And I bet if the insurers had offered an across-the-board 5 percent rate decrease it would have made it a hell of a lot harder for the government to demand 15 percent.