ST. JOHN'S, March 29, 2018 /CNW/ - Today, Insurance Bureau of Canada (IBC) welcomed a report about the current state of the auto insurance market in the province. The report was prepared for the Board of Commissioners of Public Utilities for Newfoundland and Labrador.
The report, prepared by Oliver Wyman Limited, shows that there have been increased costs in the auto product and has led to higher premiums, reduced choice and fewer options for consumers.
"Newfoundlanders and Labradorians deserve affordable auto insurance. This report shows that the system is in need of reform," said Tom O'Handley, Manager, Government Relations, Atlantic, IBC. "We are pleased that the government has taken the time to understand the issues impacting the system that are driving up costs for NL drivers. The auto insurance system needs to focus on consumers. Auto insurance, especially when it comes to collisions and injuries, needs to make people well while also being affordable."
The Oliver Wyman report found a rate deficiency of 16.2% in 2016. The report also estimated ROE for the 2017 (the fiscal accident year ending June 30, 2017) ROE at -9%.
O'Handley added, "The province hasn't reviewed the product in 14 years, and the challenging business environment has resulted in the most concentrated market in Canada – only four insurers make up more than 85% of the market."
About Insurance Bureau of Canada Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.
P&C insurance touches the lives of nearly every Canadian and plays a critical role in keeping businesses safe and the Canadian economy strong. It employs more than 120,000 Canadians, pays $9 billion in taxes and has a total premium base of $52 billion.
For media releases and more information, visit IBC's Media Centre at www.ibc.ca. Follow IBC on Twitter @InsuranceBureau and @IBC_Atlantic or like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1‑844‑2ask-IBC.
If you require more information, IBC spokespeople are available to discuss the details in this media release.
SOURCE Insurance Bureau of Canada
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Insurance Bureau of Canada is the national industry association representing Canada's private home, car and business insurers. Its member companies represent 90% of the property and casualty (P&C) insurance market in Canada. The P&C insurance industry employs over 114,000...