Insurance News - Monday, August 24, 2015

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Monday, August 24, 2015:

• The puzzle of reforming Michigan no-fault auto insurance.
• Market dynamics: Uber and the future of automated cars.
• With the help of new technology services such as Uber, Lyft and Sidecar (ride sharing services) and FlightCar, GetAround and RelayRides (car sharing), this industry is among the fastest-growing in America and around the world.
• Factors unrelated to driving can affect car insurance.
• Mapping the link between obesity and car driving.
• Waterloo moves forward to regulate Uber and other ride sharing services.

Insurance News - Thursday, August 20, 2015

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Thursday, August 20, 2015:

• Toronto UberX driver involved in serious accident has claim denied by his insurer and now threatens to sue Uber.
• Why self-driving cars will likely raise your taxes.
• Why are auto insurance rates so high in Michigan?
• How driverless vehicles are used (eg solo, carpool) will weigh heavily on their utility and environmental footprint.
• U.S. National Highway Traffic Safety Administration endorses self-driving cars.
• Canadian cities being forced to question value of taxi permit system.

Implementing the 2015 Ontario Budget

The Ontario government continues to implement auto insurance announced in the 2015 Ontario Budget.  More regulatory changes are expected in the fall.

Ontario Regulation 664

 Regulation 664 has been amended to require that all insurers offer a discount to policyholders for the use of winter tires. The winter tire discount must be made available for contracts issued or renewed on or after January 1, 2016. Insurers are encouraged to implement the discount before January 1, 2016, where feasible.

 Insurance companies that do not currently offer a winter tire discount must file an application for approval with FSCO no later than August 28, 2015.

Ontario Regulation 461/96 

Regulation 461/96 has been amended to ensure that the deductible amounts for damages for non-pecuniary loss (pain and suffering) reflect the effects of inflation since 2003. The regulation amendments include the following: 

• The $30,000 deductible amount prescribed in the case of damages for non-pecuniary loss is adjusted to $36,540 from August 1, 2015 until December 31, 2015. On January 1, 2016 and every subsequent year, this amount will be revised by adjusting the amount by the indexation percentage published under Insurance Act subsection 268.1 (1) for that year. 
• The $15,000 deductible amount prescribed in the case of damages for non-pecuniary loss under clause 61 (2) (e) of the Family Law Act, is adjusted to $18,270 from August 1, 2015 until December 31, 2015. On January 1, 2016 and every subsequent year, this amount will be revised by adjusting the amount by the indexation percentage published under Insurance Act subsection 268.1 (1) for that year. 

Regulation 664 can be found here.

Regulation 461/96 can be found here.

Insurance News - Monday, July 27, 2015

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Monday, July 27, 2015:

• Google self-driving car accidents show why humans don’t belong behind the wheel.
• Why the difference between self-driving and autonomous vehicles really matters.
• New towing rules in the Town of Richmond Hill are working.
• It's almost August and the Ontario's rate reduction promise will not be met.
• City revenues may fall drastically when driverless cars provide fewer fines.
• How Uber is ending the dirty dealings behind Toronto's cab business.

Second Quarter Rate Filings Up 0.6 Percent

FSCO approved 30 private passenger automobile insurance rate filings during the second quarter of 2015. A total of 26 insurers submitted the filings. These 26 insurers represent 52.75 percent of the market based on premium volume. Approved rates increased on average by 0.60 percent when applied across the total market.

Rate changes since 2013 now total 6.45 percent. The government rate reduction strategy calls for a 15 percent reduction by August of this year.

Ongoing tinkering with the product is not working. It is time for the government to get away from tinkering with the system and eliminate the existing design flaws. A public debate is badly needed. See my plan for moving forward.

Insurance News - Tuesday, June 30, 2015

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Tuesday, June 30, 2015:

• New KPMG report warns insurers unprepared for self-driving cars.
• Smart cars and accident benefit cuts could decimate the personal injury bar.
• The long history of the fight against Uber - the Luddites have returned.
• California reveals details of self-driving car accidents.
• Bill Gates thinks Uber has the best shot at self-driving cars.

OMPP Introduced 25 Years Ago Today

On June 22, 1990, the Ontario government under David Peterson introduced the Ontario Motorist Protection Plan (OMPP).  The OMPP disappeared long ago but no-fault auto insurance has prevailed in Ontario.  For a look back on how the system has evolved please see my earlier article.