Rate Decreases Prove Reforms Working

A large number of Nova Scotians will pay less for their auto insurance in the coming year, demonstrating that government reform of insurance regulation is working.

The Nova Scotia Insurance Review Board posted its rate filing decisions today, Oct. 8. The new rates will affect about 63 per cent of the auto insurance market in Nova Scotia, or about 321,000 drivers. The majority of filings are decreases.

"The majority are decreases. They're not huge decreases, but they are decreases. This proves that the reforms are bringing stability to the industry," said Ron Russell, Minister responsible for Auto Insurance. "When you add this to the 20 per cent rollback we achieved for drivers last year, it means significant dollars back in the pockets of Nova Scotians."

The board posted 38 decisions today on rate filings made by 24 insurance companies. The decisions are the first to be made by the board. It was established by government in September 2003 to regulate rates and ensure fairness for consumers.

"This is significant for consumers. It's the first time in several years that insurance companies have voluntarily rolled back rates," said Mr. Russell. "Insurance companies wouldn't be able to do that unless investments were paying off and the market was stabilizing. A healthy competitive industry is a strong industry, and one that's fair for consumers."

The rate filing decisions are posted on the Nova Scotia Insurance Review Board's website at www.gov.ns.ca/nsirb/ .