IBC unhappy with New Brunswick auto report

A report on reforming New Brunswick’s auto insurance system is getting a chilly reception from the Insurance Bureau of Canada (IBC).
Proposals to control auto rates in the province made by the Select Committee on Auto Insurance will, the IBC says, actually increase costs for insurers.
The report does not deal with reducing soft tissue injury claims, which the industry sees as the prime source of claims costs, notes Don Fogeron, IBC’s Atlantic vice president. “The reasons for high rates are crystal clear, but the committee has chosen to focus on the symptoms of the problem instead of solving the larger issues behind the increases, namely, soft-tissue injury awards.”
Among the proposals is an end to the “file and use” rate system that allows insurers to provisionally use rates pending approval. Insurers have been lobbying to increase the use of this practice nationwide as a means to more quickly respond to the market.
“The recommendations in this report will add to the regulatory burden already experienced by the province’s auto insurers and more regulation means less competition – and that’s bad for consumers,” says Forgeron. “Instead of moving forward, the committee is taking a backward step.”