Co-operators drops liability rates on auto in New Brunswick

Co-operators General Insurance Co. has filed for a 25% reduction in rate on the liability portion of its auto business in New Brunswick. The insurer says the rate reduction, which was filed for with the province’s Public Utility Board yesterday, will be effective from the beginning of July this year.
Co-operators’ decision to reduce its auto liability coverage rate resulted from the recent action taken by the New Brunswick government to cap minor injury pain and suffering claim benefits, company president Kathy Bardswick says. “Rates are based on the expectation of future claims costs. Given that we believe the pain and suffering caps for minor injuries will reduce future claims costs, reducing the liability premium is the right thing to do for consumers.”
Co-operators notes that the reduction in liability pricing will apply to all the insurer’s clients. The insurer says it would consider reducing rates applying to the other portion’s of auto coverage if the government took steps to address the runaway cost issues involved. “Should the government proceed with additional reforms that contain claims costs, consumers can expect additional premium reductions,” Bardswick says.