Atlantic Canadians want changes to insurance

A research study conducted by the Insurance Bureau of Canada (IBC) of the insurance buying public in Atlantic Canada suggests that over 85% of those surveyed believe that the property and casualty insurance industry continues to be profitable. Last year, insurers notched up a loss of $190 million from the region, observes the IBC’s Atlantic vice president Don Forgeron.The IBC survey, initiated in May of this year, was conducted electronically with more than 1,000 adult residents within the Atlantic provinces. In addition to the poor recognition of the financial performance of insurance companies, the survey results indicate that one out of three residents have a “good or excellent” opinion of auto insurers, while another third hold a “satisfactory” opinion.

Forgeron says that the survey results clearly indicate that insurers have “more work to do” in improving consumer perceptions of the industry. While 86% of those surveyed believe the cost of auto insurance premiums has gone up in the past few years, only 37% believe that the rising cost of claims are the cause of rising rates. And, 24% see rising costs as the biggest challenge facing the industry. More than 36% of survey respondents also see insurers as responsible for rising auto premiums, however, they also look to government to play a larger role in the issue.

Forgeron says the survey information will be shared with all interested parties, including government officials representing the provinces. The IBC has already held meetings with government officials in an attempt to bring about product reform to stem the rise in claims costs. Further research is already in the works, according to the IBC, to determine the exact cause of the dramatic rise in auto claims costs.