Insurance News - Wednesday, April 30, 2014

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Wednesday, April 30, 2014:

• Having mastered 700,000 miles of freeways driving, Google self-driving cars are now driving themselves in congested city streets.
• Colorado passes bill legalizing ride-sharing which will now require insurance coverage, vehicle inspections and driver background checks.
• Wal-Mart now offers price comparison shopping for auto insurance in the U.S.
• Ontario ombudsman warns that driving with medical conditions can be deadly.

FSCO Releases A Draft Statement Of Priorities For 2014

Section 11 of the FSCO Act requires FSCO to deliver to the Minister of Finance and publish in The Ontario Gazette by June 30th of each year, a statement setting out the proposed priorities of the Commission for the fiscal year in connection with the administration of this Act and all other Acts that confer powers on or assign duties to the Commission or the Superintendent.

 FSCO has released a draft Statement of Priorities for 2014 and invites stakeholders to submit comments on the proposed priorities and initiatives by May 30, 2014. The draft is loaded with auto insurance initiatives which reflects the high level of activity on this file by the government over the past few years. Here is a summary of the auto insurance initiatives:

Licensing Business Systems and Business Practices of Service Providers 

In the 2013 Ontario budget, the government committed to take further action to tackle fraud in the auto insurance sector. Among other measures, the government expanded FSCO’s mandate to include the licensing and regulation of the business systems and business practices of healthcare service providers that directly invoice auto insurers for statutory accident benefits. In 2014, FSCO plans to launch a licensing regime to reduce fraudulent billing practices in the sector.

Develop Minor Injury Treatment Protocol 

FSCO has contracted scientists and medical experts to develop an evidence-based protocol to treat auto accident claimants who sustain minor injuries. The protocol will inform the Superintendent when developing a revised Minor Injury Guideline.

Support the Ministry of Finance in the implementation of a Cost and Rate Reduction Strategy for auto insurance 

Work with Ministry of Finance on statutory and system reviews 

In 2013, FSCO commenced a consolidated three year review of Part VI (Auto Insurance) of the Insurance Act, and related regulations. Once the review is complete, FSCO will submit a report to the Minister of Finance in the Fall, 2014.

Design and implement an information technology Enterprise Development Program 

A new web-based information management platform will provide FSCO with the required tools to effectively regulate in an increasingly challenging financial marketplace, while providing stakeholders with centralized access to the services they expect. The first phase will be launched in Spring 2014 to complement licensing of the healthcare service providers sector.

Work with the Ministry of Finance on the Dispute Resolution System Review implementation 

Enhance auto insurance information and analysis 

• Examining factors contributing to cost changes in third-party liability bodily injury, and releasing a final report on the findings in 2014. 
• Reviewing actuarial data to gauge the effect of the automobile insurance reforms, and studying the effect of the reforms on automobile insurance rate levels. 
• Working with the General Insurance Statistical Agency to collect Ontario’s 2013 auto insurance statistical data, and analyzing the data to monitor automobile insurance cost changes and to review the reasonableness of automobile insurance rates. 
• Reviewing the Health Claims for Auto Insurance system to determine reports necessary to provide additional information on statutory accident benefits treatment trends.

Implement fraud awareness stakeholder engagement strategy

Provide information to consumers about fraud prevention 

Review and implement requirements for usage-based auto insurance

Insurance News - Tuesday April 29, 2014

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Tuesday April 29, 2014:

• Usage-based insurance confers competitive advantages to early users.
• California legislature introduces ride-sharing bill which clarifies service is a commercial activity for insurance purposes.
• Meanwhile, the Arizona Governor vetoes a bill mandating drivers subsidize ride-sharing companies.
• The reality is that Uber and Airbnb cut out the middleman. Why are governments so rattled?
• SGI is seeking input from the public and stakeholders in a comprehensive review of its auto injury program.

Insurance News - Thursday April 24, 2014

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Thursday April 24, 2014:

• According to analysis of consumers getting online quotes by Kanetix those using online quoting services are now older and using mobile devices.
• The IBC is making the rounds talking up Bill 171 to MPPs but are they listening?
• Of course MPPs are more focused on a spring election.  Speaking of which the projected outcome will likely satisfy no one. The Liberals would likely win 43 seats with 41 seats going to the Conservatives and 23 setas going to the NDP.
• As data about drivers proliferates, auto insurers look to adjust rates. Opposition to using socio-economic factors heats up in the U.S.

Insurance News - Thursday April 17, 2014

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Thursday April 17, 2014:

• FSCO reports that first quarter 2014 rate filings decreased by an average of 5.01% for the 14 rate filings (20.22% of the market) it approved.  This works out to a decrease of 1.01% for the entire Ontario market. According to my calculations, rate approvals have declined 5.57% since Rate Reduction Strategy was announced in August.
• Despite a few inaccuracies, an interesting Globe and Mail article about Ontario's dysfunctional auto insurance system.  The only thing all stakeholders agree on is the system is still broken.
• The province's branding program not working because according to this news report, wrecked vehicles being resold to unsuspecting consumers.
• Here is something to be concerned, 8 out of 10 drivers incorrectly believe hands-free cellphones are safer than hand-held use.
• Insurance industry critics in the U.S. are not happy with the practice of using data mining (referred to as price optimization) to set auto insurance rates.

Insurance New - Wednesday April 16, 2014

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Wednesday April 16, 2014:

• A group of Quebec brokers come out supporting usage-based auto insurance programs, as long as they are voluntary.
• In the U.S., Dodd-Frank reforms creates new U.S. government office to monitor availability and affordability of auto insurance in minority and low-income communities.
• Fraud continues to be a problem in New York State where an insurance association urges legislature to adopt a zero tolerance policy for fraud at a State Assembly hearing.
• A joint study by researchers at the University of California, San Diego, the University at Buffalo, and the University of Toronto has found that a computer–vision system can distinguish between real or faked expressions of pain more accurately than can humans.
• B.C.'s provincial auto insurer to pay back $39 million in overcharged fees.

Ontario Moves Forward on Regulating the Towing Industry

This week the Ontario government introduced Bill 189, the Roadside Assistance Protection Act, which, if passed, will finally introduce a regulatory scheme to the towing industry. This will be welcome news to consumers, insurance companies and honest towing companies.

The bill amends the Consumer Protection Act, 2002 and brings towing under the responsibility of the Minister of Consumer Services.  It comes following the establishment of stakeholder advisory groups and a public consultation process. The bill does not follow the recommendations of the Automobile Insurance Anti-Fraud Task Force, in that it does not create a new self-regulating body for the towing industry.  In the end, it was determined that the Task Force's recommendation was not feasible.  Instead, the towing industry will fall under the responsibility of the Commercial Vehicle Operator's Registration (CVOR) system.  The CVOR currently is responsible for large trucks and buses.  Technically the Registrar of Motor Vehicles becomes the regulator since the Registrar will have the authority to cancel a CVOR certificate.

The bill amends the Consumer Protection Act, 2002 to regulate consumer transactions involving tow and storage services. As examples, rules are provided for respecting:

1. Disclosure of information to consumers. 
2. Requirements that tow and storage services provided to consumers be authorized. 
3. Deviating from estimated payment amounts. 
4. The provision of itemized invoices.
5. Insurance requirements.  
6. Publication of rates. 
7. A Tow and Storage Consumers Bill of Rights. 
8. Requirements that consumers be allowed to remove personal property from towed or stored vehicles. 
9. The establishment of qualifications for tow and storage providers. 

The Act is also amended to provide for the appointment of inspectors and inspection powers, and to permit the Director to establish policies regarding the interpretation, administration and enforcement of the Act. The Repair and Storage Liens Act is amended to reflect the amendments to the Consumer Protection Act, 2002.

The Highway Traffic Act is amended in two main areas: the regulation of commercial motor vehicles and tow trucks and enforcement of the Act generally by the addition of administrative penalties. In respect of commercial motor vehicles, the Act is amended as follows:

1. To repeal the definition of “commercial motor vehicle” in subsection 16 (1) of the Act and replace it with the authority to define the term by regulation. 
2. To move other definitions related to “commercial motor vehicle” (“compensation”, “CVOR certificate”, “goods” and “safety record”) from subsection 16 (1) to subsection 1 (1), so that they apply to the whole Act and not only to sections 16 to 23.1, as currently provided. 
3. To provide for additional regulation of commercial motor vehicles. Provisions and regulation-making powers are added: prescribing requirements, qualifications and standards for commercial motor vehicles and for owners, operators and drivers of commercial motor vehicles; respecting documents and information to be carried by drivers and to be filed with the Ministry; adding grounds to refuse to issue, replace or renew a CVOR certificate; and requiring specified classes of owners and operators of commercial motor vehicles to install in their vehicles devices that are capable of recording and transmitting data about vehicle operation and driver conduct. 
4. To allow the Registrar of Motor Vehicles to order the immediate suspension or cancellation of a CVOR certificate where the Registrar has reason to believe that the certificate holder’s safety record or failure to comply with any Act demonstrates a significant risk to road safety and that it is in the public interest that the operator immediately cease operating all commercial motor vehicles. 
5. To prohibit drivers and other persons in charge of tow trucks from engaging in activities prescribed by regulation. In respect of general enforcement, the Act is amended to provide for the imposition of administrative penalties for the contravention of prescribed provisions of the Act and regulations. The amount of the penalties may not exceed $20,000.

Insurance News - Thursday, April 10, 2014

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Thursday, April 10, 2014:

• Telematics is the first major change to the auto insurance industry since direct lines were introduced in 1986.
• California Insurance Commissioner wants ride-sharing companies to bear more of the insurance burden when they encourage drivers to use their personal vehicles to transport passengers for a profit so it looks like this battle continues.
• This is significant, a van driver in the U.K. was convicted thanks to telematics device in his vehicle.  So it seems police will likely be able to access telematics data.
• Self-Driving Cars: It's Unacceptable for Machines to Kill Humans.
• Here is the latest in Ontario provincial polling: 33% Liberals, 33% PC, 26% NDP.  But based on the Quebec election results, don't read too much into the numbers.

Insurance News - Tuesday, April 8, 2014

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Tuesday, April 8, 2014:

• A New York consumer group says state auto insurers are charging higher premiums to drivers with less education and low-paying jobs.
• Alberta's Automobile Insurance Rate Board supports telematics as 'voluntary discount' program.
• Enhanced claim functions on auto insurers' free mobile apps can condense that process into a matter of hours.
• Liberty Mutual has succeeded in having 3 of 7 Progressive patents on UBI cancelled by the Patent Trial and Appeal Board.  The decision may open the door for smaller insurers to begin selling UBI policies.
• Tesla drivers are using their in-dash 17" screen and web browser to keep up with the news. Good news the car only costs $80,000.

Insurance News - Thursday, April 3, 2014

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Thursday, April 3, 2014:

• Insurers promise discounts to drivers who allow in-car monitoring and many Canadians are eager to sign up based on response to UBI entrants.
• In addition, a Towers Watson consumer survey shows Canadian market is ready for widespread user-based insurance adoption.  94% are open to a UBI policy and 50% of those would change their driving habits to save money.
• Government safety agency missed trends that could have led to quicker recall of GM cars.  News like this makes me a little apprehensive about self-driving cars.
• For ride-sharing vehicles when does commercial insurance start and personal auto insurance stop?
• Bar suggests they are surprised at province’s moves on Cunningham's DRS report. They shouldn't be because the 2013 Budget indicated legislation was to be introduced in the fall of 2013.
• Bodily injury severity is rising while car safety continues to improve. How can insurers address the trends?