By: Luke Jones, Published on July 4, 2017 09:59 AM, Last Update on July 4, 2017 07:00 AM
Rising auto insurance premiums in Newfoundland and Labrador are causing concern among customers and regulators. To find a potential solution, the auto insurance industry in the province will undergo a major revision.
The Public Utilities Board (PUB) and Service NL say they will be part of a new review into the auto insurance industry in Newfoundland and Labrador. The action is being taken after a wave of customer complaints towards the provincial government.
"Claims costs and insurance rates have increased steadily since the last review in 2005," advised Service NL Minister Perry Trimper in a media release on Tuesday morning.
"We have heard the concerns of consumers and stakeholders who are finding it difficult to deal with the rising cost of insurance, so we have asked the Public Utilities Board to undertake this independent review as a way to find solutions that will benefit consumers," he said.
In its upcoming review, PUB will consider closed insurance claims data to understand the "costs in the system, the product itself and the rate setting mechanisms.”
The costs of claims have steadily risen in the province, while taxi drivers have also faced premium increases in recent years. PUB says the review will investigate both these situations.
Service NL and PUB will hold consultations in public in a bid to be transparent through the review process. Dates and times for events will be announced soon. Once the review is complete, a report with recommendations will be given to the Newfoundland and Labrador government. Regulators and authorities will then be able to decide on the course of action.
The government says any potential changes it makes to the Automobile Insurance Act will be in place by fall 2018.