New Brunswick reforms working, says Co-operators

Reforms to limit compensation for minor injuries are paying off in New Brunswick, says Co-operators General Insurance Co., one of the province’s largest insurers.The company made the statement in a release to announce that 9,00 cheques are being sent to its policyholders reflecting reimbursement for an overall rate decrease of 20.6% effective July 1 of this year. Another 12,000 customers will see the reduction reflected in monthly premiums.The reimbursement is just one sign that auto insurance reforms are working in the province, says Terry McRorie, region vice president for the insurer. Progress is also noted in depopulation of the Facility Association, the industry pool for high risk drivers, and in increased competition in northern New Brunswick, which has suffered from severe availability problems.”The province controls the wordings on your auto policy and sets the rule for insurance companies. They are definitely on the right track,” says McRorie. “There is more than the government can be doing in tightening up the auto policy that would result in further savings,” he adds.The statement refers to a report by the Atlantic Insurance Harmonization Task Force, which notes that increasing bodily injury costs are the root cause of rate increases, and these costs must be controlled if rates are to be maintained.