Consumer Advocate's Interim Report on Auto Insurance Released

ENVIRONMENT/LABOUR--Consumer Advocate's Interim Report on Auto Insurance Released

Affordability, availability and transparency are the main things Nova Scotia consumers want from their auto insurance. These were the findings released today, June 4, in the Consumer Advocate's Interim Report on Auto Insurance.

"I've heard from young and old, married and single, students and workers" said George Jordan, auto insurance consumer advocate. "You'll be hard pressed to find a group of people that haven't been affected by the rising cost of auto insurance. I have heard Nova Scotians' comments and it was evident that the common need for affordability, availability and transparency strongly resonated throughout all of these groups."

The first part of Mr. Jordan's mandate was to engage Nova Scotians in the public consultation process. This process, which concluded on May 15, was one means of hearing Nova Scotians' concerns. More than 750 submissions were received. In addition, the consumer advocate has held dozens of meetings and spoken with hundreds of individuals. The information they provide will help determine the appropriate auto insurance solution.

The significant trends that emerged during the public consultation process included concerns over unreasonable rate increases, discriminatory rates and lack of consumer access to information.

Most respondents continue to indicate their dissatisfaction at the increases in their auto insurance premiums upon renewal. Many respondents indicated increases ranging from 20 per cent to 110 per cent had occurred without any new accidents or convictions.

A number of respondents, in particular seniors and under 25 male drivers, believed that insurance companies discriminate based on age. Consumers were also concerned that they do not have adequate access to the underwriting rules the insurance industry uses to set vehicle and driver ratings.

"I realize this report doesn't contain all the answers, but I wanted to provide some feedback to consumers before my work is complete, so that they know what's being said and what my ideas are so far," said Mr. Jordan. "I hope government will incorporate my suggestions into its plan for dealing with rising insurance rates."

Five areas Mr. Jordan's report identified that should be included in a Nova Scotia solution for auto insurance are:

• Fundamental changes to the injury compensation system for pain and suffering
• Improvements to basic accident benefits
• Transparency and fairness in underwriting rules
• Greater disclosure to consumers and understanding of underwriting and facility association rules
• A continuing consumer presence in the auto insurance system.

Appointed on April 11, the consumer advocate is also responsible for researching issues and proposals put forward in other provinces and participating in the development of policies that will assist consumers. The consumer advocate will continue to meet Nova Scotians and conduct research on this issue. A final report is expected later this year.

Copies of the Consumer Advocate Interim Report will be available on the Environment and Labour Web site at www.gov.ns.ca/enla or by calling the consumer advocate at 902-424-2794.