Province Introduces Auto Insurance Regulations

New regulations announced today, March 12, will make it easier for insurance companies to lower auto insurance rates for consumers.

A simplified "file and use" system will apply to rate applications that contain an average rate decrease, and certify that individual premiums won't increase by more than two per cent. Companies will still have to file the required information with the Insurance Review Board, but will not need board approval. The filing will be reviewed to ensure it complies with regulations.

"This is about making our insurance system easier to navigate," said Finance Minister Michael Baker. "These regulations won't guarantee reduced rates for consumers, but they will make it easier and faster for insurers to lower rates, which will hopefully result in further decreases."

Insurance Review Board approval will continue to be required for rate applications that exceed a two per cent increase for individuals.

Mr. Baker said it is up to insurance companies to take advantage of these changes. If they do, consumers should see lower rates on average.

Government will consult with insurance companies in the coming months about further auto insurance reforms. Government intends to move forward with regulations later this year to make it mandatory for companies to file on a regular basis.

Since government introduced auto insurance reforms in 2003, premiums have dropped from an average of $1,048 in November 2003 to $800 in June 2007. The average reduction is about 24% per cent which equals about $426.3 million in savings for consumers.

More information, including detailed filing requirements, are on the Nova Scotia Insurance Review Board website at www.gov.ns.ca/nsirb/industry.asp .