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Injury cap 1: Changes could increase claim costs 17%     (Copyright Thompson’s World Insurance News     Not to be redistributed by individual recipients.)     The Insurance Bureau of Canada says the auto insurance changes announced by the Nova Scotia government will add to claims costs but the effect on premiums won’t be known until consumers and the insurers have had time to adapt to the new environment.     As reported earlier in Thompson’s, the province has reformed its cap on pain and suffering awards for minor auto accident injuries with a new definition and an increase in the limit from $2,500 to $7,500.     “An effective auto insurance system must maintain a balance between benefits and stable premiums,” IBC Atlantic vp Bill Adams said.     “The government has changed that balance to provide more benefits.     “We are committed to helping implement the changes and hope that the new balance works to the benefit of Nova Scotia drivers.”     The bureau said there are many factors affecting claims costs and the price of insurance in Nova Scotia including the ongoing constitutional challenge against the previous cap, solvency requirements, claims inflation, individual company experience in a competitive marketplace and how claimants and their legal representatives will respond to the changes.      Meanwhile actuarial firm Oliver Wyman says the changes to the minor injury cap and definition will increase bodily injury coverage claim costs by 17% — a $24 increase in the estimated required average premium for 2010.     The firm added that due to a lack of sufficiently detailed data and the nature of forecasting, “the estimates we present in this report are based on numerous assumptions,” which it said are reasonable.     Much more in our May 10, 2010 edition, including other comments. If you are not a regular reader, go to www.thompsonsnews.com and click on subscribe on the right hand side of the page.        Thompson’s World Insurance News P.O. Box 1027,  Waterloo, Ontario,  Canada  N2J 4S1 Tel: 519-579-2500 Fax: 519-745-7321 mpub@sympatico.ca THOMPSON’S WORLD INSURANCE NEWS , Canada’s only independent weekly for p&c insurance professionals, has been the industry’s most trusted news source since 1988.