Province Seeks Input on Mandatory Automobile Insurance Rate Applications

The province is seeking input on a plan to have all auto insurance rates reviewed regularly by the province's Insurance Review Board.

Regulations will require insurance companies in Nova Scotia to provide a detailed rationale for all auto insurance rate charges, not just those proposed to change.

This would include a full analysis by actuaries, who evaluate the complex technical and financial factors related to insurance risks such as automobile accidents.

A discussion paper was released today, June 16, asking for input on how often and when the companies should file detailed applications.

"Auto insurance rates should be regularly reviewed, so that rates fairly reflect market conditions," said Finance Minister Michael Baker. "We want to ensure that consumers get the best possible rates, given that companies have certain costs to cover."

Under the Insurance Act, auto insurance companies are already required to apply to the Insurance Review Board to change most of their insurance rates and risk classifications. A streamlined process is available for requests to decrease rates.

However, insurers have not been required to file regular applications outlining all rates. Since 2005, more than 60 per cent of automobile insurance companies in Nova Scotia had not filed applications outlining actuarial and other support for all rates charged.

The discussion paper can be found at www.gov.ns.ca/finance .