Regulation (July 01, 2008)

INSURERS’ USE OF PRIVATE INVESTIGATORS PROMPTS COMPLAINTS TO PRIVACY COMMISSIONER

Complaints against the insurance industry filed with the federal privacy commissioner increasingly involve the covert collection of personal information by private investigation firms, the commissioner said in her annual report.

Of the 350 complaints filed with the Office of the Privacy Commissioner of Canada (OPCC) between Jan. 1 and Dec. 31, 2007, 10% were filed against the insurance industry.

NOVA SCOTIA RATE REVIEW BOARD SEEKS MORE FREQUENT FILINGS

Nova Scotia auto insurance companies might have to apply to the Nova Scotia Insurance Review Board (NSIRB) for rate approvals and risk classifications at regular intervals in the future, and not just if there is a proposed change to the rates.

The proposed change is contained in a new regulation intended to be introduced later this year.

“Auto insurance rates should be regularly reviewed, so that rates fairly reflect market conditions,” Nova Scotia Finance Minister Michael Baker said in a release.

As of June 1, 2008, nearly 38% of insurance companies active in Nova Scotia have not filed a full, actuarially justified rate application for private passenger vehicles with the NSIRB since 2004, according to a discussion paper by the Office of the Superintendent of Insurance in the Province of Nova Scotia. Roughly 62% of active companies have not filed since 2005.

ONTARIO BROKERS ASK REGULATOR TO REVIEW USE OF CREDIT SCORING

The Insurance Brokers Association of Ontario (IBAO) has asked the Financial Services Commission of Ontario (FSCO) to look into whether insurers are using credit scoring and, if so, whether they are using credit scoring for the purpose of determining auto rates.

FSCO’s regulations currently ban the use of credit scores to determine automobile rates in Ontario.

IBAO’s position is that all insurance companies must abide by the spirit and the letter of this regulation, IBAO president Rodney Hancock notes in the association’s newsletter.

“IBAO believes that the ‘playing field’ must be level for all insurers and that this is the best interest of consumers and all stakeholders,” Hancock said.