IBC implores New Brunswick government to take auto action

The Insurance Bureau of Canada (IBC) is urging the New Brunswick provincial government to introduce auto product reform as lack of standard insurance within the province reaches a critical stage.

The IBC has provided a new submission to the provincial government’s “select committee” which was recently appointed to investigate the “auto insurance crisis” within the province. The IBC claims that its offering provides a workable solution to ensure that auto insurance remains affordable and available to New Brunswick drivers.

The provincial government’s select committee is studying the availability and pricing of insurance, and looking possible improvements to the current system. Once finalized the committee will provide its recommendations for change to the government. “Research shows the main reason for rising auto rates is soft tissue injury claims. Even though accident rates have dropped in each province in the region, the number of bodily injury claims continues to rise,” says Don Forgeron, the IBC’s Atlantic vice president. “There needs to be a balance between auto insurance premiums and compensation provided to accident victims. If the insurance industry pays out increasingly higher amounts in claims under the current system, people could end up facing higher premiums.”

Forgeron adds, “car insurance premiums in each province in the region have increased for a reason – the growing practice of hiring a lawyer after every car accident. It’s no longer simply about helping people get well following an accident. Now, it’s about how much extra money a person can receive for even the most minor of injuries – such as a sore neck or sore back.”

The IBC has told the committee that one model for auto reform is not necessarily better than another model – that each option has unique characteristics that should be considered before changes are made to the current system. “Those opposed to any type of reform have suggested that our industry is proposing a ‘no fault-only’ solution. The reality is that we’ve been encouraging a broader discussion at every opportunity – one that should involve the citizens of New Brunswick – not just single interest groups,” Forgeron notes. “Consumers in New Brunswick deserve a type of auto insurance that will ultimately benefit them through cost-savings, and it’s important for the select committee to make recommendations that would provide such a product.”