New Brunswick Insurance Board

Insurance board announces further rate reductions (09/01/30)

NB 88

Jan. 30, 2009

FREDERICTON (CNB) - The overall proposed average rate reduction for all companies writing private passenger automobile insurance in the province in 2009 will be one per cent, the New Brunswick Insurance Board has announced.

"This brings the average rate to $754," said Paul D'Astous, board chairman. "For the fifth consecutive year, New Brunswick ratepayers have seen a reduction in rates for private passenger automobiles, placing New Brunswick among the lowest in Canada. Government reforms enacted in 2003 and 2006 have resulted in an estimated $500 million in cumulative savings for New Brunswick ratepayers."

The board rendered 49 decisions on companies writing private passenger insurance in the province. These rates generally became effective Jan. 1, 2009, for new business, and will generally become effective March 1, 2009, for renewals. The board's numbers are reviewed by PricewaterhouseCoopers, and Ernst & Young.

The New Brunswick Insurance Board is a quasi-judicial administrative tribunal established by the Government of New Brunswick in 2004 as the regulatory agency for automobile insurance rates. It is an independent agency that operates at arm's-length from government, with the mission to ensure that New Brunswick rates are just and reasonable; based on New Brunswick driver experience; based on New Brunswick company experience; and based on comparison to other provinces in Atlantic Canada.

09/01/30

MEDIA CONTACT: Lisa Ferguson, New Brunswick Insurance Board, 506-643-7710.

09/01/30