December 21, 2004 by Canadian Underwriter
Pafco Insurance Co., writer of non-standard auto insurance, has received interim approval to start writing policies in Nova Scotia.
The move is part of Pembridge’s plan to spin-off Pafco as a separate brand to write high-risk policies and depopulate the Facility Association (FA), the industry’s pool for high-risk drives who cannot obtain coverage from private insurers.
“The number of drivers in the FA has increased dramatically over the past couple of years to an all-time high, and losses incurred by the FA increase the costs for all drivers,” says Bob Tisdale, president of Pafco. “As an independent company, Pafco will provide more affordable products and more choice for consumers and more importantly, will help depopulate the FA, which will bring rates down across the board.”
Pafco estimates drivers could save as much as 20% over FA rates. The company has already received approval to write in New Brunswick and Ontario.
The company expects its interim approval to become permanent soon. “Auto insurance rates are dropping and will continue to drop. The launch of Pafco in Nova Scotia sends a strong signal that we are committed to implementing the reforms introduced by the [Premier John] Hamm government, reducing rates, and bringing stability to the marketplace,” Tisdale adds.