Nova Scotia opts not to remove gender as a rating factor, continues discussing framework for optional tort

Removing gender as a rating factor is not included in the 2011 auto insurance reforms released by Nova Scotia’s government.
During a press conference, Graham Steele, the minister responsible for the province’s Insurance Act, said gender is a factor that has led to substantial premium differences between young women and young men.
“The UARB [Nova Scotia Utility and Review Board] reported to us that gender is actuarially sound as a rating factor – in fact, more so now than the last time they looked at it,” Steele said. “In other words, it’s a provable fact that young women cost the system less, much less, than young men.
“The UARB also reported to us that removing gender as a rating factor would lead to a substantial increase in premiums for young women – even higher than the decrease for young men. For these reasons, we have concluded that gender will continue to be an allowable factor.”
And although the government says an optional tort product is to be implemented during Phase 2 of the reforms (in April 2013), there is still much work to be done on this element of the reform package. Due to the complexity of the issue, the government and Utility and Review Board (UARB) is taking more time to review a proposed framework for such an option, Steele said.
He noted that Saskatchewan has an optional tort system, but since Saskatchewan has a public system, the model can’t be taken whole and dropped into Nova Scotia.
“We don’t really have a model for [optional tort] in Canada,” said Steele. “It is in place in Saskatchewan, but the uniqueness in Saskatchewan is that as a public system, everyone has one insurer.
“It is very complex to talk about taking one system where some people will have the [tort] coverage, but most won’t. How does it apply if someone buys the coverage and the person who injures them does not? There are all sorts of permutations and variations on that.
“There are 600,000 insured vehicles in Nova Scotia, so if we’re going to make the changes, then we have to get it right. We have accepted the fact that if we are going to get it right, then we need to take more time.”