A report into the current auto insurance market in Newfoundland and Labrador has been praised by the Insurance Bureau of Canada (IBC). Created for the Board of Commissioners of Public Utilities for the province, the report highlights the troubling situation in Newfoundland and Labrador.
The provincial government has commissioned a review into the market and the report was part of the wider investigation. Prepared by Oliver Wyman Limited, the paper shows the lack of choice and consumer options in the auto insurance market and the increasing costs of premiums.
"Newfoundlanders and Labradorians deserve affordable auto insurance. This report shows that the system is in need of reform," said Tom O'Handley, Manager, Government Relations, Atlantic, IBC.
"We are pleased that the government has taken the time to understand the issues impacting the system that are driving up costs for NL drivers. The auto insurance system needs to focus on consumers. Auto insurance, especially when it comes to collisions and injuries, needs to make people well while also being affordable."
One of the key findings in the report is a premium rate deficiency of 16.2% during 2016.
O'Handley added, "The province hasn't reviewed the product in 14 years, and the challenging business environment has resulted in the most concentrated market in Canada – only four insurers make up more than 85% of the market."