Member

The fundamental point is that we have here an opportunity to help with the cost of living. As brokers are advising, insurers and market-makers are withdrawing from the Province because the economics of the claim system do not pay. An insurance company, like any other business, has to make a profit, but claims may be exorbitant and the management of them expensive. Quite often, claims through these companies result in the amount of time that the vehicle is on the road expanding, with the car hire charges expanding in parallel. That is a source of very significant profit. They have their own garages in some cases, and obviously their own hire cars. That all goes on the bill of the insurer—and then ends up with the consumer.