Auto insurance rates decrease in New Brunswick, but home insurance premiums still a concern

New Brunswick’s Office of the Consumer Advocate for Insurance has released its annual report for 2012, reporting that while the auto insurance market in the province has continued to be stable, rising home insurance rates are still an issue.

The report, for the fiscal year ending March 31, 2013, says that the average premium for private passenger automobiles was about $720, a slight reduction over 2011.

However, consumers continue to express concern over rising home insurance premiums, the report says.

“The insurance industry also expressed great concern over extreme weather related damages which are increasing in recent years, both in frequency and in severity,” the report notes.

“The main issue is whether this is just a passing occurrence or a new trend that will continue over the coming years.”

Credit scores for pricing of home insurance is also a concern, the report notes. “Legislation that would ban or regulate the use of credit scores for underwriting purposes in all types of insurance has been supported by successive governments since 2010, but legislation to that effect has not been brought forward to this date,” it adds.

The total number of cases (concerns, complaints and requests for information or assistance) handled by the office was 1,172, of which 82.17% were related to property and casualty. The breakdown includes:

•  Auto insurance: 51.2%, compared to 81% in 2005.
• House insurance: 27.82%, compared to 12% in 2005.
• Life and health insurance: 15.44%, compared to 5% in 2005.
• Other: 5.54%, compared to 2% in 2005.

Most concerns raised by consumers were in relation to claims and premiums.

The total expenditures for the office for fiscal year 2012 was $496,453.72.

The report also expressed concern about the 2011 recommendation from former provincial ombudsman Bernard Richard that the consumer advocate’s responsibilities be assigned to the ombudsman as of Jan. 1, 2015.

“The Consumer Advocate is opposed to these recommendations or any other recommendations that would lessen or undermine the independence and the legislative status of the Consumer Advocate and the Office of the Consumer Advocate,” the report says.

“The issue has remained outstanding throughout 2012, without any official response from the governing authorities involved in the matter.”