Our offices will be closed on New Brunswick Day: August 3, 2020.

Nominal rebates signal auto insurers’ reluctance to adjust rates

Insurance companies in Ontario are facing roadblocks if they attempt to increase auto insurance premiums in the near future, says Easy Legal Group of Companies President and CEO Larry Herscu.

“If anything, drivers in the province should see reduced car insurance rates beyond the patchwork of nominal rebates that have been offered as a result of COVID-19,” he says.

Herscu points to the coronavirus pandemic as a factor that has reduced the number of auto accidents in the province, therefore resulting in fewer accident benefit claims and civil lawsuits.

To date, insurance companies have provided $685 million in relief to Ontario drivers, but the province’s finance minister says more should be done, Global News reports.

The Financial Services Regulatory Authority (FSRA) — the independent regulatory agency created to improve consumer protections in the province — says about 70 per cent of policyholders are receiving some discount.

Finance Minister Rod Phillips tells Global he will look at the insurance companies not supporting their customers and will publicly name them if necessary.

“I believe there’s still more that can be done,” he tells the news outlet. “I don’t believe all of the companies are participating at the level that they should.”

Herscu says he’s heard that some insurers are requiring clients to fill out a rebate application, others are automatically applying the discount to all policyholders, while some are silent on the issue. 

“In some cases, you have to contact your insurer to find out how to receive your rebate,” he says. “It’s certainly better than nothing, but the average amount appears to be quite small.” 

However, even before the pandemic brought traffic to a halt, Herscu says claims were already on a downward trajectory following the province’s change to the Licence Appeal Tribunal (LAT) in 2016. 

“The introduction of the LAT has reduced the number of claims being pursued,” Herscu says, pointing to a recent benchmark report from the FSRA that determines whether the rate changes proposed by insurers in their filings are reasonable.

As Canadian Underwriter reports, “bodily injury claims –– mainly personal injury lawsuits against alleged at-fault drivers –– are expected to drop 8.3 per cent a year. This is compared to the immediate past benchmark of 0 per cent (or no expected change year to year).”

The article goes on to note that the decline in the expected future loss costs for bodily injury and accident benefits are partly offset by an increase in the expected cost to repair vehicles.

Herscu says that as accident benefit claims are changing so too is the LAT. 

“The laws around tribunals are evolving. Historically, you could not dispute a LAT decision, and — as evidenced in Shuttleworth v. Ontario — the Court of Appeal recently re-affirmed the importance of adjudicative independence. Essentially, the court ruled the LAT has to rehear this particular dispute over catastrophic impairment,” he says.

“As the LAT continues to handle claims, it’s likely the case law around it will grow,” Herscu adds.

While the FSRA benchmark report indicates insurance rates could be reduced, he remains skeptical.

“If you’re receiving an insurance rebate of $20 or $40 during a global pandemic — where very few drivers are on the road and tribunals and courts are at a standstill — I’m not convinced insurers will reduce rates if and when driving levels are back to normal,” Herscu says. 

The Easy Legal Group of Companies is a Canadian litigation financing firm. Its lending solutions service the personal injury sector including plaintiffs with pending injury claims, their legal representatives and the service providers involved in their cases. The firm is registered to conduct business in Ontario, B.C., Alberta and the Atlantic provinces. Services are delivered through three brands: Easy Legal Finance Inc., Rhino Legal Finance and Seahold Legal Finance.

Contingency Fee Acceleration Program™ Launch

Seahold has launched the Contingency Fee Acceleration Program,™ in response to feedback from its lawyer partners.

Its aim is to bridge the financial gap between settled cases and the receipt of pending contingency fees, based on delays caused by COVID, allowing lawyers immediate access to funding to support their businesses. 

The application process is fast and efficient, and with the necessary documentation completed and proof of settlement, funding may be received within 24 hours.

FOR MORE INFORMATION - CALL OR EMAIL:

1-888-285-7333

seahold@seahold.ca

WE ARE COMMITTED TO CONVERTING SETTLED CASES INTO CAPITAL, TODAY!

Easy Legal Finance Inc. Acquires Seahold Investments Inc.

Easy Legal Finance Inc. Acquires Seahold Investments Inc.

Easy Legal Finance Inc. acquires Seahold Investments Inc.

Strategic acquisition strengthens market position, as a leading litigation financing firm, servicing the personal injury sector.

TORONTO: April 29, 2020 /CNW/ - Easy Legal Finance Inc. a Canadian litigation financing firm, announced today, the acquisition of Seahold Investments Inc. Based in Moncton and established in 2000, Seahold Investments Inc. is one of the first firms in the country to offer pre-settlement lending to personal injury plaintiffs.
 
“We are pleased to add another established and successful firm to the Easy Legal Group of Companies, said Larry Herscu, President & CEO of Easy Legal Finance Inc. This strategic acquisition, in addition to acquiring Rhino Legal Finance in 2018, further demonstrates our commitment to enhance our position as a national litigation lender, with services delivered through strong regional brands, built on a coast-to-coast network of established relationships.”

"Over the past 20 years, we have built a firm based on the merits of access to justice - providing personal injury plaintiffs with the financial support required through the legal process, says Hubert Seamans, Founder and CEO of Seahold. Easy Legal’s reputation for client service is uniquely aligned with ours and I’m pleased to have them further expand our service offering and evolve the firm, for the benefit of our clients and lawyer partners.”

Mr. Herscu also added that, “The Easy Legal Group of Companies will maintain its mission and remain dedicated to helping those who have been hurt, are in need financial support, in partnership with the plaintiff bar and its service providers.  

About the Easy Legal Group of Companies

The Easy Legal Group of Companies is a Canadian litigation financing firm. Its lending solutions service the personal injury sector including plaintiffs with pending injury claims, their legal representatives and the service providers involved in their cases. The firm is registered to conduct business in Ontario, B.C., Alberta and the Atlantic provinces. Services are delivered through three brands: Easy Legal Finance Inc., Rhino Legal Finance and Seahold Investments Inc.

www.easylegal.ca
www.rhinofinance.com
www.seahold.ca

For media inquiries, please contact:

Nicole Popovich
647-297-8801
popovich@easylegal.ca

ANTI-SPAM LEGISLATION

ANTI-SPAM LEGISLATION

Do you miss getting information and recent industry news from Seahold? You can get back on our mailing list. You just need to sign up. Canada's anti-spam legislation (CASL) came into effect July 1, 2014. It is in place to protect Canadians while ensuring that businesses can continue to compete in the global marketplace. With the new legislation, Seahold did need to ensure everyone on our mailing list had opted in to receiving information. If you’d like to receive updates, subscribe. You can unsubscribe anytime.