East-coasters call for government resolve on insurance pricing

A market research study just released by the Insurance Bureau of Canada (IBC) of the Atlantic provinces suggests that the majority of personal auto insurance buyers believe that the provincial governments have a responsibility to deal with premium rate hikes. Public sentiment also favors a need for change to the auto insurance framework within the region, the IBC notes.The public survey, which was conducted by Halifax-based Corporate Research Associates, suggests that a “large majority” of Atlantic Canadian residents believe that insurance rates have risen primarily as a result of escalating claims and injuries. A much smaller percentage of respondents thought insurance fraud had an impact on rates, while “fewer” believe that the increases implemented have been driven by insurers pursuing profit gains. “For many years, insurers have been asking governments to make the much-needed [legislative] changes for the sake of all drivers in Atlantic Canada. We are sharing these recent [survey] results with government officials because it is they who decide, through legislation, on the kind of auto insurance companies are allowed to sell,” says the IBC regional vice president Don Forgeron.