Minister Comments on UARB Insurance Report
Environment and Labour (to April 1/08)
May 13, 2003 6:00 PM
Environment and Labour Minister Ron Russell said today, May 13,
that changes are needed in the automobile insurance industry. Mr.
Russell was reacting to the release of a report by the Nova
Scotia Utility and Review Board on its examination of Rates for
Private Passenger Automobile Insurance.
The board concluded that the rate increases imposed by the
insurance companies on consumers have been "extremely harsh" and
"appear to have been imposed without consideration of consumers'
ability to pay".
"This is consistent with what we're hearing from consumers and
supports our reasoning for our amendments to the Insurance Act,
which provide for a rate increase 'time-out' from May 1, 2003, to
Jan. 1, 2004," the minister said.
Mr. Russell noted that the board expressed concern about both the
regulatory system and restrictive underwriting practices.
"We share these concerns and the early indication from the public
consultations we have been conducting is that it is a widely-held
concern," said Mr. Russell.
The minister said that the Department of Environment and Labour
has developed a four-point plan to deal with the automobile
insurance issue and that the board's examination of rate
increases was the first phase of that plan.
"I am glad the board's deliberations are finally available to
us," Mr. Russell said. "In combination with our education and
public consultation processes, the report will help us develop
appropriate policy to deal with this highly complex issue."
FOR BROADCAST USE:
Environment and Labour Minister Ron Russell has welcomed the
release of the report on the Utility and Review Board's
examination of automobile insurance rates.
Mr. Russell said the report validates government's view that
change is required in the insurance industry.
Mr. Russell said that the Department of Environment and
Labour has a four-point plan to develop new policy on automobile
insurance, and that the U-A-R-B report is an important component
of the plan.
-30-
Contact: Penny McCormick
Environment and Labour
902-424-7420
E-mail: mccormpl@gov.ns.ca
amc May 13, 2003 5:56 P.M.
Environment and Labour Minister Ron Russell said today, May 13,
that changes are needed in the automobile insurance industry. Mr.
Russell was reacting to the release of a report by the Nova
Scotia Utility and Review Board on its examination of Rates for
Private Passenger Automobile Insurance.
The board concluded that the rate increases imposed by the
insurance companies on consumers have been "extremely harsh" and
"appear to have been imposed without consideration of consumers'
ability to pay".
"This is consistent with what we're hearing from consumers and
supports our reasoning for our amendments to the Insurance Act,
which provide for a rate increase 'time-out' from May 1, 2003, to
Jan. 1, 2004," the minister said.
Mr. Russell noted that the board expressed concern about both the
regulatory system and restrictive underwriting practices.
"We share these concerns and the early indication from the public
consultations we have been conducting is that it is a widely-held
concern," said Mr. Russell.
The minister said that the Department of Environment and Labour
has developed a four-point plan to deal with the automobile
insurance issue and that the board's examination of rate
increases was the first phase of that plan.
"I am glad the board's deliberations are finally available to
us," Mr. Russell said. "In combination with our education and
public consultation processes, the report will help us develop
appropriate policy to deal with this highly complex issue."
FOR BROADCAST USE:
Environment and Labour Minister Ron Russell has welcomed the
release of the report on the Utility and Review Board's
examination of automobile insurance rates.
Mr. Russell said the report validates government's view that
change is required in the insurance industry.
Mr. Russell said that the Department of Environment and
Labour has a four-point plan to develop new policy on automobile
insurance, and that the U-A-R-B report is an important component
of the plan.
-30-
Contact: Penny McCormick
Environment and Labour
902-424-7420
E-mail: mccormpl@gov.ns.ca
amc May 13, 2003 5:56 P.M.