Newfoundland auto reforms proclaimed despite industry opposition

Despite notice from several insurers that they would withdraw from the province of Newfoundland’s auto insurance market due to the passage of Bill-30, the auto reform measures have been proclaimed.The bill was proclaimed on August 1, although this was not announced until August 2. The reforms will see rates frozen for another year, and government says insurers are expected to pass on an average 15% savings, with adjustments retroactive to August 1.A statement from the government outlines the method by which refunds and reductions will be implemented, and acknowledges the ire the reforms have created amongst insurers. “Government has listened to the concerns expressed by the industry over Bill-30. Government wants to have a positive business climate in which industry can operate and looks forward to the participation of industry in all stakeholders during the public hearing.”This hearing is slated to take place at an undisclosed date during the fall, and will look at several lines of insurance, including homeowners, marine, commercial property and liability, as well auto.Along with the group of insurers who are exiting the market, the Facility Association is also looking into the legality of withdrawing from Newfoundland.