N.S. Insurance Review Board Disbanded

Nova Scotia has announced that it will discontinue its Insurance Review Board and transfer the regulatory responsibilities to the province’s Utility and Review Board.



The Utility and Review board is absorbing the former insurance board’s rate increase approving duties along with the three professionals who were appointed to the board when it was introduced against the advice of insurers in 2003.

 

At that time, insurers warned that tight regulation would result in increased rates for policyholders although the government had introduced the board to offset escalating rates.

 

Beginning Oct. 1, insurers will apply to the Utility and Review Board for approval for rate increases and risk classifications for private passenger vehicles every two years, and for approval for other vehicular rate hikes and changes every three years.

 

In announcing the disbanding of the insurance review board, Finance Minister Michael Baker consumers “will have the protection of knowing that their rates are being reviewed every two years,” while the insurers won’t feel over-regulated.

 

The Insurance Bureau of Canada was amongst organizations vocally opposed to the insurance board’s inception five years ago.

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Transcontinental Media G.P.