The government recently unveiled a series of reforms to auto insurance. We want to help you understand what they mean to you, so we’ve graded the reforms in the areas to address where they have implemented changes.
What’s Impacted?
There are 3 areas impacted by this legislation:
- Cost
- Claims Handling
- Regulation
There are some positive changes in this report which will be of benefit to you, particularly elimination of the sales tax, changes to the way claims are handled and paid and regulation.
On the other hand, there were no changes made that will substantively address the continuing increases in cost over time, which given economic challenges in Newfoundland and Labrador, will continue to be a challenge for our clients and their pocketbooks.
The new legislation mandates a review of auto insurance every 5 years, so we hope more reform around costs can be included in the next review.
Pass or Fail: Giving out the Grades
Below we break down each proposed change and grade them. We are grading them based on the impact they may have on the cost of your insurance, improved claims or client experience, and improved operating environment for insurers.
The Grades
Header photo credit: Andrew Hawthorne / Twitter
