Information
Please contact the Consumer Advocate for Insurance if you are seeking general information on insurance issues, assistance in finding insurance or advice on dealing with a claim. Another resource for insurance concerns is the General Insurance OmbudService
The automobile insurance industry is regulated by three different regulators in New Brunswick:
Federal
Office of the Superintendent of Financial Institutions (OSFI)Provincial
Superintendent of Insurance (Financial and Consumer Services Commission)The New Brunswick Insurance Board
Insurance Premiums
In New Brunswick, rates are used to determine a premium, which is what an individual driver will pay for their insurance coverage. Factors used to determine the premium charged could include driving record, value and type of vehicle, what the vehicle is used for, number of kilometres driven annually, and the territory the driver resides in. Different liability limits and deductibles also have an affect on premium. A higher deductible can reduce premium where a lower deductible will be priced higher. New drivers are entitled to the First Chance Discount. Legislation prohibits ratings based on age, gender and marital status.The insurance company has to develop a selling price before all costs are known. Rates are developed by the insurer today, for future rates, based on past claims (experience) of the company and/or industry for New Brunswick.
The General Insurance Statistical Agency (GISA) collects data over a long period of time representing as large a sampling of claims data as possible. A company will have an actuary analyze this data to develop the rates required to cover all losses and pay expenses as well as to provide a reasonable profit. The company will also take into consideration the competitive philosophy and current market conditions. An insurer does not want to be priced too low and not have enough premium to cover losses or too high and not be profitable. A company looks at many factors before determining the final rate change that will be presented to the Board for approval.
These rates and the assumptions and justification for them are then required to be submitted to the New Brunswick Insurance Board (NBIB) for review on an annual basis. The Board will determine whether to approve rates as presented by companies or to hold a hearing in order to determine if rates are just and reasonable.