Minister Noel tables PUB Report

In the House of Assembly today, Government Services and Lands Minister Walter Noel tabled the Annual Report of the Public Utilities Board (PUB) on operations carried out under the Automobile Insurance Act during the period April 1, 2001 to March 31, 2002.

In the report, the PUB advises that it will soon be undertaking a benchmark analysis based on 2001 industry loss experience and that it may hold a hearing on the setting of benchmark rates in the coming fall.

The report outlines serious deterioration in claims for the first time in five years. In 2000, claims increased 24.7 per cent over 1999 while premiums increased by 4.6 per cent. The board feels these loss ratios will put pressure on rates in the short term, as indicated in recent rate filing by insurers.

Minister Noel said: "Government currently has a bill in the House of Assembly calling for the appointment of an advocate to represent consumers at PUB automobile insurance rate hearings. This advocate would be responsible for analyzing the rate change proposal, enquiring into justifications for change, and endeavouring to help keep rates as low as possible. The advocate would also have authority to hire expertise necessary to conduct a thorough analysis of any proposed rate increase.

"We are actively pursuing a variety of measures to make driving safer and insurance more affordable. We also want to increase citizen trust in the process.

"We recently introduced a bill to ban the use of hand-held cell phones by drivers while driving, and are planning to strengthen impaired driving penalties. And we will bring additional legislation to the House next fall to deal with more of the issues raised during our automobile insurance consultation process."

Media contact: Rick Callahan, Communications, (709) 729-4860.

2002 05 07                          4:25 p.m.