NORTH YORK, On. (Jan. 29, 1998) -- Ontario private passenger auto insurance rates declined in the last quarter of 1997, marking the sixth successive quarterly decrease since 1996 and continuing a downward trend in rates for a second consecutive year, the latest published Ontario Insurance Commission (OIC) rate information shows.

The rates approved by the OIC during the fourth quarter ending December 31, 1997 indicate a decrease in auto insurance rates of 3.40%, when weighted by market share.

With the latest filings by insurers, the average cost of auto insurance in Ontario during the last quarter of 1997 was 2.78% below the price a year earlier. This is 7.50% lower than the third quarter 1996, preceding the introduction of Bill 59 (the Automobile Insurance Rate Stability Act, 1996). Bill 59 was passed on June 22, 1996 and was proclaimed on November 1, 1996.

Of the 30 company filings approved in the fourth quarter of 1997, 22 dealt with rate reductions, one with a rate increase, while the remaining seven dealt with other matters that had no impact on the overall rate level.

In reviewing rate filings, the OIC looks for actuarial soundness and ensures that an insurance company's projected rates are based on sound and verifiable information. The rates must be able to sustain the company's long-term capacity to meet its claim costs. The OIC also scrutinizes company filings for inefficiencies in the claims management process to avoid such costs from being passed on to consumers.

The OIC publishes rate information to help consumers make better choices among insurers. This information is available in OIC's Rate Guide or through the OIC's Internet website at <http://www.ontarioinsurance.com>. Consumers who are unclear about what prices they are paying for specific coverages should check with their agent or broker and/or shop around to see how their policy compares in the marketplace.

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Media contact: Willie Handler (416) 590-7230

ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS APPROVED

October 1, 1997 to December 31, 1997

Company	Market Share (1996)	Effective New Business Date	Effective Renewal Business Date	Approved Rate Change
Allstate Insurance Company of Canada	4.11%	Feb 1, 1998	Feb 1, 1998	0.00%1
Axa Insurance (Canada)	2.20%	Dec 1, 1997	Jan 1, 1998	-0.18%
Belair Insurance Company Inc.	0.81%	Nov 10, 1997	Jan 1, 1998	-4.30%
Canada Life Casualty Insurance Company	1.08%	Nov 1, 1997	Jan 1, 1998	-0.33%
CIBC General Insurance Company Limited	1.14%	Jan 1, 1998	Feb 1, 1998	3.00%
CIBC General Insurance Company Limited	1.14%	Feb 1, 1998	Feb 1, 1998	0.00%1
Commercial Union Assurance Company	1.35%	Feb 1, 1998	Mar 1, 1998	-0.56%
Commercial Union Assurance Company	1.35%	Feb 1, 1998	Mar 1, 1998	0.00%1
Commercial Union Assurance Company	1.35%	Feb 1, 1998	Mar 1, 1998	0.00%2
Dominion of Canada General Insurance Company	5.05%	Jan 1, 1998	Feb 1, 1998	-2.50%
Farm Mutual Reinsurance Plan Inc.	0.87%	Jan 1, 1998	Jan 1, 1998	-6.24%
Farmers' Mutual (Lindsay)	0.27%	Jan 1, 1998	Feb 1, 1998	-8.10%
GAN Canada Insurance Company	0.35%	Nov 1, 1997	Jan 1, 1998	-4.67%
General Accident Assurance Company	3.41%	Feb 1, 1998	Apr 1, 1998	-3.42%
Guardian Insurance Company	1.40%	Feb 1, 1998	Apr 1, 1998	-1.25%
Halifax Insurance Company	3.47%	Jan 1, 1998	Feb 1, 1998	-0.14%
Halifax Insurance Company	3.47%	Jan 1, 1998	Feb 1, 1998	-0.17%
Liberty Mutual Insurance Company	4.28%	Oct 15, 1997	Dec 8, 1997	-4.90%
Lombard Canada Ltd. (Group Business)	0.18%	Dec 1, 1997	Feb 1, 1998	-0.12%
Lombard Canada Ltd.	1.52%	Jan 1, 1998	Feb 15, 1998	-0.23%
Lumbermen's Mutual Casualty Company	1.30%	Dec 15, 1997	Feb 1, 1998	-4.30%
Motors Insurance Corporation	0.21%	Mar 1, 1998	Mar 1, 1998	-5.00%
Pilot Insurance Company	5.98%	Jan 1, 1998	Mar 1, 1998	-4.79%
Portage La Prairie Mutual Insurance Company	0.09%	Dec 1, 1997	Dec 1, 1997	-4.50%
Portage La Prairie Mutual Insurance Company	0.09%	Jan 1, 1998	Jan 1, 1998	0.00%2
Perth Insurance Company	0.00%	Jan 1, 1998	N/A	0.00%3
Scottish & York Insurance Company Limited	0.77%	Jan 1, 1998	Mar 1, 1998	-9.86%
Wawanesa Mutual Insurance Company	2.69%	Jan 1, 1998	Jan 1, 1998	-10.28%
Western Assurance Company	0.62%	Nov 1, 1997	Jan 1, 1998	-4.10%
York Fire & Casualty Insurance Company	0.44%	Feb 1, 1998	Feb 1, 1998	0.00%1
Total Market Share	43.59%