HALIFAX — Though it condemned a series of sudden jumps in auto insurance rates as "harsh," a long-awaited report by Nova Scotia's regulator offered few firm conclusions Tuesday on what might slow down the price hikes.

Rather, the 52-page report by the Nova Scotia Utility and Review Board said insurance company costs and rates were likely to keep rising - effectively dropping the issue back into the lap of the provincial Tory government. "Continuing cost increases are to be expected as long as the existing automobile insurance system in Nova Scotia remains as it is today," said the report, written by the three board members.

The board largely accepted an actuarial report - criticized by some as being biased by industry numbers. It said that insurance company losses since 1997 of $224 million in the province "have been nothing short of abysmal."

The commissioners concluded: "Given these large losses, it is not surprising that the automobile insurers have been taking drastic action to restore profitability."

However, the board went on to say that the industry shouldn't have waited for several years, and then imposed "rate shock" on consumers.

"It's clear to the board that the rate increases imposed by the insurance companies on consumers have been extremely harsh, and appear to have been imposed without consumers' ability to pay," it continued.

The report gently suggested government "would be well justified in considering the desirability of alternative regulatory models."

It doesn't suggest any specific model, such as a public insurance system, or one where prices are reviewed by a regulator.

Under the existing system, the price increases are filed with the regulator and it routinely approves them without review.

The board also said there "appears to be evidence of restrictive underwriting practices" by insurance companies, but again, it stopped short of clear conclusions.

"The board has heard evidence that there may be unfair discrimination concerning rates for youths and seniors, but without further study and information it is not possible to reach any definitive conclusion."

The report focused on rate hikes up until August 2002 and said it wasn't looking at hikes requested since then.

Statistics Canada figures indicate car-insurance rates have increased by an average of 61 per cent over the past year.

Rates in Nova Scotia have risen faster than in any other province except one: New Brunswick.

The hearing was ordered by Labour Minister David Morse last year and the province has been awaiting its findings as it conducts its own review of the industry.

Throughout the hearings, the Insurance Bureau of Canada said insurance rates are being driven up by people filing more claims for minor injuries.

The bureau has said those who argued that the current rates are unreasonable didn't table any evidence to support their position, and the review board's own actuary testified that rates were still inadequate to cover the costs of the system.

Last week, Nova Scotia's ruling Conservatives froze auto insurance rates in a pre-election bid to quell public anger over soaring premiums.

In a move denounced by the insurance industry, the provincial government introduced a bill that will give cabinet the power to prohibit insurance firms from raising rates from May 1, 2003, until Jan. 1, 2004.