Fairness and Equity Sought Through Auto Insurance Regulation Change
Environment and Labour (to April 1/08)
March 16, 2004 3:00 PM
As part of its plan to bring fairness, equity and lower auto
insurance rates to Nova Scotians, the provincial government has
amended the Risk Classification Regulations.
The amendment changes the date for implementing a risk
classification system based on non-discriminatory factors to Nov.
1 for Facility Association. This deadline is now consistent with
a similar requirement for all automobile insurance companies.
"We're very concerned about today's reports that insurance
company profits are rising once again. On one hand, it's
important to know that the industry is improving, but that's only
good if consumers see some benefit from these profits," said Ron
Russell, the minister responsible. "Over the long term, as the
insurance industry recovers in Nova Scotia, competition should
follow, meaning more choice and stabilized rates for consumers."
In a letter to the minister, the Nova Scotia Insurance Review
Board relayed information from the industry that delaying the
implementation date should keep more drivers out of Facility
Association and would avoid "potential for disruption in the
marketplace" and also avoid "raising issues of fairness and
equity amongst consumers."
"Our goal continues to be the fairest and most equitable rates
possible for consumers," said Mr. Russell.
The minister noted that improvements have already taken place.
Reports from the Facility Association show their new business in
Nova Scotia has decreased steadily since the government
introduced regulatory changes in August 2003. Those changes
ensured that Nova Scotia drivers could only be placed in Facility
Association because of their driving record and for no other
factor, such as age or marital status. Facility Association data
also indicates that between January 2003 and January 2004 their
new business figures have gone down a total of 32 per cent in
Nova Scotia.
Facility Association is often the only option for drivers who are
considered to be high risk because of their previous driving
record or other circumstances.
A risk classification system is a set of rules and criteria used
by an insurance company to assess the likelihood that a person
insured may be involved in an accident and suffer injury, damage,
or loss.
FOR BROADCAST USE:
The provincial government has amended one of its insurance
regulations.
The amendment changes the date for implementing a risk
classification system based on non-discriminatory factors to
November 1st for Facility Association. This deadline is now
consistent with a similar requirement for all automobile
insurance companies.
The minister responsible for insurance, Ron Russell, says
the change will avoid increasing the number of consumers placed
in the high-risk insurance category.
He says that government's goal continues to be the fairest
and most equitable rates possible for consumers.
-30-
Contact: Valerie Bellefontaine
Environment and Labour
902-424-2575
E-mail: bellefva@gov.ns.ca
njm March 16, 2004 2:53 P.M.
As part of its plan to bring fairness, equity and lower auto
insurance rates to Nova Scotians, the provincial government has
amended the Risk Classification Regulations.
The amendment changes the date for implementing a risk
classification system based on non-discriminatory factors to Nov.
1 for Facility Association. This deadline is now consistent with
a similar requirement for all automobile insurance companies.
"We're very concerned about today's reports that insurance
company profits are rising once again. On one hand, it's
important to know that the industry is improving, but that's only
good if consumers see some benefit from these profits," said Ron
Russell, the minister responsible. "Over the long term, as the
insurance industry recovers in Nova Scotia, competition should
follow, meaning more choice and stabilized rates for consumers."
In a letter to the minister, the Nova Scotia Insurance Review
Board relayed information from the industry that delaying the
implementation date should keep more drivers out of Facility
Association and would avoid "potential for disruption in the
marketplace" and also avoid "raising issues of fairness and
equity amongst consumers."
"Our goal continues to be the fairest and most equitable rates
possible for consumers," said Mr. Russell.
The minister noted that improvements have already taken place.
Reports from the Facility Association show their new business in
Nova Scotia has decreased steadily since the government
introduced regulatory changes in August 2003. Those changes
ensured that Nova Scotia drivers could only be placed in Facility
Association because of their driving record and for no other
factor, such as age or marital status. Facility Association data
also indicates that between January 2003 and January 2004 their
new business figures have gone down a total of 32 per cent in
Nova Scotia.
Facility Association is often the only option for drivers who are
considered to be high risk because of their previous driving
record or other circumstances.
A risk classification system is a set of rules and criteria used
by an insurance company to assess the likelihood that a person
insured may be involved in an accident and suffer injury, damage,
or loss.
FOR BROADCAST USE:
The provincial government has amended one of its insurance
regulations.
The amendment changes the date for implementing a risk
classification system based on non-discriminatory factors to
November 1st for Facility Association. This deadline is now
consistent with a similar requirement for all automobile
insurance companies.
The minister responsible for insurance, Ron Russell, says
the change will avoid increasing the number of consumers placed
in the high-risk insurance category.
He says that government's goal continues to be the fairest
and most equitable rates possible for consumers.
-30-
Contact: Valerie Bellefontaine
Environment and Labour
902-424-2575
E-mail: bellefva@gov.ns.ca
njm March 16, 2004 2:53 P.M.