This week’s web-survey of business leaders and CEOs explored the issue of rising premiums for automobile insurance.

Automobile insurance rates have become 2003’s sleeper election issue, with many provincial elections focussed on what can be done to reduce premiums. Some Governments have sought to mitigate the issue by introducing public insurance programs. Other Governments are shying away from such drastic measures and looking to regulation.

Rising costs for car insurance were seen as one factor which led the Tories in New Brunswick to lose seats, and the issue is expected to become a prominent topic of debate for Nova Scotia’s upcoming election. With an Ontario provincial election anticipated as early as this fall, Ernie Eves introduced a platform this week that contends to help insurance companies reduce costs in the hopes they will use the anticipated savings to reduce rates.

Overall, business leaders are somewhat concerned about today’s car insurance premiums. When asked to what extent was their current premium a concern, the mean score among respondents was 4.6 on a seven point scale. There is moderate support for Government to help insurance companies reduce costs by regulations that would seek to reduce fraud. Business leaders oppose insurance companies having a role in determining when a person who has been in a car accident has received enough medical treatment in order to reduce fraud.

These are the key findings from the COMPAS/Financial Post business leader survey conducted under the sponsorship of the Canadian Chamber of Commerce.

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