FA calls on Nova Scotia government for rate filing action (November 09, 2004)

The Canadian insurance industry’s pool for high-risk auto business, the Facility Association (FA), is calling on Nova Scotia’s insurance rate filing board to act more promptly in approving more appropriate rates as the "market of last resort". Due to regulatory interference, the FA’s rates over recent years have become attractive relative to the standard auto insurance marketplace, thus resulting in a much higher population than should be the case.The FA should be the market of last resort, comments its CEO David Simpson, the process and success of auto reform in the other provinces has largely depended on depopulation of the high-risk pool. "Everyone, including insurance companies, would love to see FA business shrink away to nothing," he adds.