Canadian Market (November 01, 2009)

NOVA SCOTIA BROKERS “OPTIMISTIC” ABOUT NEGOTIATING PROVINCE’S AUTO INJURY CAP

Nova Scotia brokers say they are “optimistic” about negotiating the future of the province’s auto insurance cap with the newly elected Nova Scotia government.

Nova Scotia Premier Darrell Dexter, a personal injury lawyer, promised during his election campaign to scrap the cap and replace it with a deductible.

Insurance Brokers Association of Nova Scotia (IBANS) president Ken Myers contacted Canadian Underwriter after giving a presentation to the 89th annual convention of the Insurance Brokers Association of Ontario (IBAO).

In his presentation to the IBAO, he addressed the state of the cap situation in his home province. Myers told Canadian Underwriter he could envision a scenario in which the cap might be maintained.

“For the cap to stay, we believe the Nova Scotia government is interested in determining which injury definitions are ‘unfair’ and making changes accordingly that would allow those injuries to fall outside the cap,” said Myers. “Doing so could maintain the cap and the product stability that is so important, while introducing some of the necessary changes the Premier feels are required.”

MPI REPORTS DECREASING PROFIT IN FIRST HALF OF 2009

Manitoba Public Insurance (MPI) has reported a profit of Cdn$25.5 million for the first half of fiscal 2009, marking a decrease from the Cdn$40.3 million earned during the same period in 2008.

Claims costs for the six-month period ended Aug. 31, 2009 were fairly stable, increasing by Cdn$22.6 million or 5.9% compared with the first half of fiscal 2008.