Higher Cap, Higher Premiums? NS Review Board Hears From Insurers

Loss costs per car could rise by $73, says analysis.

A higher, $7500 minor injury cap in Nova Scotia could translate into a $100 hike in premiums for drivers in the province.

The cap increase will prompt more claims for minor injuries and put pressure on accident-benefits, rehab and uninsured driver costs, according to the Insurance Bureau of Canada’s (IBC) a submission to Nova Scotia’s Utilities and Review Board.

The Board held a public meeting on the cap changes September 30.

Although the cap won’t have an immediate impact on claims or costs–“the full cost effect of the reforms will be likely to phase in over a period greater than one year,” the IBC’s submission notes–but losses, and subsequent costs will rise, it predicts.

Loss costs per car could rise by $73.57–taking into account bodily injury, accident benefits and uninsured driver costs–according to an actuarial analysis prepared by Exactor Insurance Services for the bureau.

The analysis stresses that the projected figures are estimates, and rely on which injuries are deemed “minor” or not.

The IBC asked the board  to consider the findings of its analysis and recommended that it “address any concerns about rate adequacy or redundancy through its review of companies’ individual rate applications.”

Copyright © 2017 Transcontinental Media G.P.
Transcontinental Media G.P.