POLITICS

Liberals failing to take steps needed to lower auto insurance premiums: NDP

09/24/2013 02:43 EDT | Updated 11/24/2013 05:12 EST
TORONTO - Ontario's New Democrats are accusing the governing Liberals of failing to live up to their promise to cut auto insurance premiums.

They say the Liberals have backtracked on lowering the benchmark for insurance industry profits that's set by the provincial regulator.

They say Finance Minister Charles Sousa promised to lower it to nine per cent from 12 per cent, but they've only reduced it to 11 per cent.

The NDP say that will make it more difficult to reach an average 15 per cent cut to premiums across the province — a promise the Liberals made in the last budget.

But Sousa says 11 per cent is just a benchmark and the actual return on equity for insurers is actually about four per cent.

He says implementing anti-fraud measures is what will actually make a difference in lowering auto insurance premiums.