By: Luke Jones, Published on April 5, 2018 07:43 AM, Last Update on April 5, 2018 04:44 AM
Aviva Canada is the latest insurance giant to praise the report published by Oliver Wyman Limited, which highlights the condition of the auto insurance market in Newfoundland and Labrador. The province is currently undergoing a significant review of the market and the report detailed some of the problems regulators and insurers are facing.
The Insurance Bureau of Canada (IBC) has already praised the report, and has now been joined by Aviva, the second largest P&C provider in Canada. In a statement, the company says the report “supports what Aviva and the industry have been saying for years - the current market isn’t working for insurers and, more importantly, it isn’t working for Newfoundland and Labrador drivers who pay the highest premium rates in the Atlantic Region.”
“Aviva currently pays out more to settle claims in Newfoundland and Labrador than we collect in premium dollars, which is unsustainable,” said Aviva Canada vice-president of broker distribution Gordon Murray in the statement.
The report was prepared for the Board of Commissioners of Public Utilities in Newfoundland and Labrador. Titled “Profit and Rate Adequacy Review – Private Passenger Automobiles,” the investigation shows the lack of choice and consumer options in the auto insurance market and the increasing costs of premiums.
According to the report, industry profitability in the province has declined from 8% in 2007 to -6% in 2016. Aviva Canada agrees with the consensus that “meaningful reforms” are necessary to fix the auto insurance system in Newfoundland and Labrador.
“This isn’t working for you and it’s not working for us either. We can do better for you. We really should do better for you. We will continue to work with the province to help meet the fall 2018 deadline for much needed reforms to the Automobile Insurance Act,” Murray added.