Direct writer association challenges New Brunswick’s ban on use of credit scores

The Canadian Association of Direct Response Insurers (CADRI) has appealed to New Brunswick’s premier and minister of justice and consumer affairs to oppose the province’s proposed ban on the use of credit by home and auto insurers.
The provincial government tabled Bill 43 in February. It proposes to ban of the use of credit scoring in the underwriting of home and auto insurance, thus promoting fairness and access to insurance for all consumers, the government says.
CADRI argues that such a ban would have the opposite effect.
“Bill 43 will have the unintended consequence of costing the average New Brunswick house and car owner more money for their insurance in the long run,” said CADRI chairman Francois Boulanger.
“We do not think that the government’s goal is to create higher rates for average risk owners so we encourage them to slow down and discuss this change more thoroughly with us.”
CADRI further says “good public policy should be evidence-based, and should follow a fair, transparent process before deciding to restrict commonly used and accepted business practices.”
It supports the review underway by the Canadian Council of Insurance Regulators and says the New Brunswick legislation is “premature and based on insubstantial evidence.”