Atlantic premiers to look at public auto option

Atlantic provinces may see a harmonized approach to auto insurance finally come to pass as a result of intense public attention being paid to increasing rates. But a public auto insurance system is also on the table.The Atlantic premiers met today in Charlottetown to address the issue of rising costs and came away with a promise to implement harmonized reforms this year. A “harmonized” Insurance Act had been bandied about for the past several years, but has never come to fruition.Nova Scotia premier John Hamm says the reforms will reflect changes already in the works in his province, including underwriting rules.While formal plans were not released, the premiers say they will look at reducing costs (i.e. claims costs) with a view to lowering premiums. They also want the federal government to look at insurer investment practices.A task force has been charged with coming up with a draft harmonized bill by the end of September, so that provinces can look at passing legislation in their fall sitting. It has also been asked to complete a “comprehensive cost-benefit study” of what would be involved in setting up a public auto insurance system in Atlantic Canada.Such a system has been pushed for by the Consumer Association of Canada in reaction to New Brunswick’s auto insurance issues. This week’s announcement of a cap on “pain and suffering” awards for auto accident victims has been criticized by that group, but welcomed by insurers as a means to reducing growing claims costs.