Province’s auto insurance industry to undergo review

Province’s auto insurance industry to undergo review | Insurance Business Canada

Province’s auto insurance industry to undergo review
The Public Utilities Board (PUB) and Service NL are set to review the auto insurance industry in Newfoundland and Labrador.

The review is a response from the provincial government to criticism from local drivers about the oppressive cost of insurance in the area.

"There has been a lot of frustration with the escalating costs," Service NL minister Perry Trimper told CBC. "There's no question, when you start sticking out as much as we are right now in Atlantic Canada — and we're just behind the worst situation in Canada, which is in Ontario — that's something we want to address."

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Trimper said the costs of claims and insurance rates have steadily increased since the previous review in 2005. He also noted that drivers are finding it difficult to keep up with rising costs.

"We have heard the concerns of consumers and stakeholders who are finding it difficult to deal with the rising cost of insurance," he said.

The PUB review will investigate "costs in the system, the product itself and the rate setting mechanisms" by examining data from closed insurance claims.

Higher claim costs and insurance rates that taxi operators have experienced over the past several years will also be assessed.

The review could result in reduced insurance rates and more accountability, Trimper assured. He explained the review should isolate drivers who cause most of the claims and drive prices up for everyone.

"I don't believe that a normal consumer who's obeying the rules and driving safely should have to pay the same rates as someone who is not," he said.

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