In its presentation to the Nova Scotia Standing Committee on Economic Development, the Insurance Bureau of Canada is calling on government leaders to take immediate action to change the manner in which insurance is offered.

“It’s critical to have an open review about the kind of auto insurance system that is best for the everyone in the province,” says Don Forgeron, IBC’s Atlantic vice president. “We need a public process that gives Nova Scotians an opportunity to provide clear input on the kinds of changes needed.”

In its submission, IBC states that insurers are doing what they can to address the factors affecting rising insurance costs. This includes spearheading campaigns for mandatory use of seatbelts, graduated licensing, and campaigns against drinking and driving. Already, the industry has jointly created a national standard for auto theft deterrent systems, and has introduced industry-wide fraud prevention measures and road safety and auto theft initiatives.

According to Forgeron, insurers are prepared to operate within whichever insurance system best serves the people of Nova Scotia, provided that fairness, affordability, availability, stability and acceptability are the driving principles. “Currently, a total of seven different auto insurance systems are operating in Canada, while some insurers operate in all jurisdictions,” Forgeron says.

Forgeron believes insurers have gone as far as they can within the current framework in Nova Scotia, and the result remains unacceptable, because of rising costs and mounting financial losses. “The time has come for Nova Scotians — particularly auto insurance consumers — to get involved in the public discussion about the future options for automobile insurance,” says Forgeron. “To that end, we see government as the necessary catalyst.”