News release

Ministers Meet Regarding Insurance Industry

Council of Atlantic Premiers

The Atlantic ministers responsible for regulation of the insurance industry met today, March 22, in St. John's, Nfld. The meeting, organized by Walter Noel, Minister of Government Services and Lands for Newfoundland and Labrador, recognized that the Atlantic provinces have common challenges.

"I welcomed this opportunity to brief my Atlantic colleagues on our experience with automobile insurance reform here in Newfoundland and Labrador," said Mr. Noel. "As the first Atlantic province to systematically examine this issue we feel that our knowledge will assist the others. Since May 1995, when the first House of Assembly select committee started its review, many of these issues have become of interest in the other Atlantic provinces."

Ministers also discussed the progress towards developing harmonized insurance legislation through channels established under the Council of Atlantic Premiers. They highlighted the challenges in regulating the insurance industry.

Newfoundland and Labrador's public consultation on automobile insurance reform clearly illustrates the breadth of interest in this industry and the issues that impact on affordability of insurance for the general public.

Public reaction to the Newfoundland and Labrador Proposals for Automobile Insurance Reform: A Consultation Paper, released in October 2001, was discussed. Information regarding the public submissions received was provided by Mr. Noel and will assist other provinces in their own assessments. It will also facilitate completion of the Atlantic Insurance Legislation Harmonization Project.

"We have been monitoring this situation very carefully. As a result of this I have requested the Utility and Review Board to examine private passenger rates in Nova Scotia," said David Morse, Nova Scotia Minister of Environment and Labour. "This meeting with my Atlantic counterparts afforded an excellent opportunity to discuss the broader issues on a regional basis."

The ministers noted that there has been significant co-operation among the Atlantic provinces in the area of insurance, especially since 1997. It was then that a regional project was initiated to pursue harmonization of legislation governing the regulation of the insurance industry. It was recognized that consumers would benefit if the regulatory burden was reduced. Based on this, the superintendents of insurance continue to collaborate on the development of a common legislative framework.

"The current insurance regime in Prince Edward Island is very similar to that in the other Atlantic provinces. Our main goal in joining these discussions was to share information and talk about how each of the Atlantic provinces can work together in meeting the challenges we face in regulating the insurance industry," said Jeffrey Lantz, attorney general for Prince Edward Island.

"As minister of the lead province for the Atlantic Insurance Legislation Harmonization Project, I was pleased that Atlantic ministers had this opportunity to discuss the regional harmonization project and other insurance issues face-to-face," said Bradley Green, Minister of Justice and attorney general for New Brunswick. "In response to public concern regarding accessibility and affordability of auto insurance, New Brunswick has established a Select Committee on Private Passenger Insurance. This committee's report, due July 2002, will assist our province in developing an appropriate regulatory framework for automobile insurance."

The ministers agreed that the superintendents will proceed with completing the legislation harmonization project, including the development of regulations. They committed to support the principles of regional co-operation and maintain the long-term advantages gained through exchange of information.

The Atlantic ministers also endorsed the establishment of a committee that will develop a system of plain language disclosure requirements on the purchase of home owner's and automobile insurance. This committee is to be led by Newfoundland and Labrador.