March 29, 2018 (Toronto, ON) – The following is a media statement from Gordon Murray, VP Broker Distribution, Atlantic for Aviva Canada.
“Aviva welcomes a report by Oliver Wyman, Profit and Rate Adequacy Review – Private Passenger Automobiles that supports what Aviva and the industry have been saying for years - the current market isn’t working for insurers and, more importantly, it isn’t working for Newfoundland and Labrador drivers who pay the highest premium rates in the Atlantic Region ($1090 / per year). This new report highlights that industry profitability as measured as a percent of premium (pre-tax) has dropped from 8% in 2007 to -6% in 2016. At the end of 2016, rate adequacy was -16.2%. In other words, premiums were 16.2% or $179 below what they should have been. Aviva currently pays out more to settle claims in Newfoundland and Labrador than we collect in premium dollars, which is unsustainable. Meaningful reforms to the province’s auto insurance system are needed. This isn’t working for you and it’s not working for us either. We can do better for you. We really should do better for you. We will continue to work with the province to help meet the fall 2018 deadline for muchneeded reforms to the Automobile Insurance Act.”