Insurance News - Monday, October 28, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Monday, October 28, 2013:

• FSCO's third quarter rate approvals are posted and they show a decline of 0.68% for the entire market.  However, CAA rates are dropping by 7.15%, as the insurer appears to be the first company to aggressively accept the government rate reduction strategy.
• Ontario auto insurers are moving closer to widespread deployment of usage-based insurance programs.
• Florida appeals court finally lifts temporary ban on part of auto insurance law clearing the way for enforcement on anti-fraud reforms.
• Meanwhile, a Florida crack down on insurance fraud has led to 1,571 arrests for the first half of this year.
• Self-driving cars projected to reduce injuries by 90 percent and save $450 billion annually in the U.S.  What impact will that have on premiums?
• Not only that, but data shows that self-driving cars are smoother, safer drivers than humans.

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Thursday, October 24, 2013:

• Canadian Centre for Study of Insurance Operations to release telematics data standards in January 2014.
• According to a Towers Watson survey the P&C market in Canada and the U.S. is hardening. So what additional impact will the Ontario legislated 15% rate reduction have? 
• The U.K. plans to introduce independent medical panels to validate whiplash claims and surprisingly the proposal is supported by defense and plaintiff bar. 
• Google's Director of Safety reports that even the best automotive safety technology can't possibly save every life. The limit to the effectiveness of safety technology is the way people use it (or don't use it).
• Looking into the future when self-driven cars cause crashes who will pay the auto insurer or product liability insurer? 
• Watch a self-driving Nissan Leaf avoid a pedestrian on the road:

Insurance News - Tuesday, October 22, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Tuesday, October 22, 2013:

• Is personal lines auto worth fighting from an independent broker perspective? 
• Growing trend in kickback schemes and staged accidents in Minnesota to take advantage of the state’s no-fault laws.
• If you need any proof of the problem there,  a federal lawsuit filed October 14 accuses a diagnostic imaging company and 46 chiropractors of engaging in an elaborate kickback scheme aimed at defrauding Minnesota’s no-fault insurance system.
• Aging baby boomers expected to drive demand for self-driving cars as accident rates for seniors rise.
• To capitalize on a burgeoning market, the University of Michigan has approved a $6.5 million track for testing self-driving vehicles.
•  Kathleen Wynne to launch ‘open government’ push but is the problem really lack of government transparency or is it Cabinet decision-making is clouded in secrecy?

Insurance News - Saturday, October 19, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Saturday, October 19, 2013:

• Ontario drivers paying up to 90 per cent of road costs (approximately $7.5 billion) yet the province is looking at making car owners pay more.
• New York State Senator will be introducing a bill to allow drivers to carry electronic proof of insurance and vehicle registration.
• A Florida clinic owner who was involved in more than 26 staged accidents and treated 60 individuals could get 75 years in PIP fraud case. 
• Use of telematics in British auto insurance policies have increased seven-fold in the last two years.
• Do self-driving cars need speed limits?
• Smarter cars are on the way (not smarter drivers).

Insurance News - Tuesday, October 15, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Tuesday, October 15, 2013:

• A KPMG study suggests that consumers would prefer to buy a self-driving car from Google over U.S. automakers. 
• A Michigan study suggests that auto insurance rates can be reduced without changes to the unlimited medical benefits.
• Around three-quarters of all child car seats are installed incorrectly so many strapped-in children still at risk.
• California Governor Jerry Brown has vetoed a bill that would have created a teen driving curfew after 10 pm and extending the wait time from 6 months to 9 month for young drivers before that can get a full license.
• Move to scrap no-fault auto insurance coming to Florida Senate, as 2012 anti-fraud measures tied up in court.
• Toyota has combined cruise control and lane-keeping technologies to form a new feature, Automated Highway Driving Assist.

Ontario Government Consulting On Proposed Service Provider Regulations

The 2013 Ontario Budget included a commitment to introduce legislative amendments that would, if passed, "Give the Financial Services Commission of Ontario (FSCO) authority to license and oversee business practices of health clinics and practitioners who invoice auto insurers". This authority was included in The Prosperous and Fair Ontario Act (Budget Measures), 2013, which received Royal Assent on June 13, 2013. 

The legislation provides regulation-making authority consistent with recommendations made by the Automobile Insurance Anti-Fraud Task Force in 2012. 


The proposed regulations would prescribe:
- Licensing eligibility including grounds for unsuitability
- Designated principal representative eligibility requirements and duties
- Public registry information
Future proposed regulations would be expected to prescribe:
- Business/billing standards of practice
- Listed expenses (e.g. expenses covered by licensing)
- Expenses not covered by licensing
- Licence applicability
- Revocation/Suspension criteria and expedited process
- Licence surrender criteria
- Unfair or deceptive acts or practices
- Administrative monetary penalties
- Consequential amendments to the Statutory Accident Benefits Schedule (SABS) 

The Ontario government's Regulatory Registry is inviting stakeholders and interested parties to provide comments on these proposed regulations (that have yet to be made public).

The deadline for comments is November 24, 2013.

Insurance News - Sunday, October 13, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Sunday, October 13, 2013:

• New Brunswick government satisfied that provincial auto insurance rates are the 3rd lowest in Canada, despite report from its own expert that drivers are paying too much.
• Yet another attempt is being made to ditch 'no-fault' auto insurance in Florida.
• Michigan introduces bill aimed at "runners" which would set 30-day waiting period for contacting accident victims but bill has major loopholes.
• The Nevada Division of Insurance will be reviewing how insurers apply surcharges to drivers who’ve been caught texting or talking on a phone while driving.  Insurers will be asked to submit data justifying the use of this factor.
• The Great Canadian personal data grab - why do businesses want so much data?

Insurance News - Friday, October 11, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Friday, October 11, 2013:

• Oliver Wyman actuaries report that New Brunswick drivers overpaid millions for auto insurance and shouldn't have to pay any extra for a higher minor injury cap.
• New Brunswick report recommends increasing $2,500 auto insurance cap for minor injuries.
• A Globe and Mail opinion piece asks the question, will politicians in Ontario ever be able to deliver lower auto insurance premiums?
• British Police arrested 27 people over scams involving the sale of fake auto insurance policies over the Internet.
• Ford may not have a self-driving car yet but it has developed a self-parking system.

Insurance News - Monday, October 7, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Monday, October 7, 2013:

• Toronto Star article suggests that perhaps usage-based insurance will be able deliver enough savings for Ontario auto insurers to allow them to cut rates by 15%? - nonsense.
• FSCO has released a usage-based insurance bulletin with guidance on what to include in a filing with the regulator.
• Traffic fatalities in Toronto are at 3-year high - this has got to be related to distracted driving. 
• Self-driving cars offer the latest example of how society is not always prepared to deal with new technologies when they become available.
• California Bill would require DMV to issue drivers' licenses to undocumented immigrants who pass driving tests and buy insurance coverage. This follows similar moves by Illinois, Oregon, Maryland, Nevada, New Mexico, Washington and Utah.

FSCO Releases Usage-Based Insurance Guidelines

On October 3, 2013, FSCO released a Bulletin providing some guidance to auto insurers on the type of information that should be filed when seeking approval for a Usage-Based Insurance Pricing (UBIP) program.  For full details regarding FSCO requirement, refer to the UBIP Bulletin. 

Personal Information and Privacy Requirements

Although telematics devices do not currently have the capability to identify who is driving a vehicle at any particular time, in many circumstances (for example where a vehicle has only one listed driver), the data collected by the device may reasonably be assumed to be about that individual, with the result that the data is personal information as defined in PIPEDA.   However, FSCO has taken the position that telematics data should be treated as personal information even if it is not about the driving behaviour of any one identifiable individual. 

Personal Telematics Data: Insurer Transparency and Consumer Consent

UBIP programs must be voluntary and enrollment must include the express, informed consent of the policyholder to the collection, use and disclosure of personal information by the insurer or third party provider.  Any personal information collected through a UBIP program, or its accompanying devices or software, should not be disclosed to any other party unless expressly consented to by the person or as required by law.

 Drivers should be able to enroll in a UBIP program without being required to share their personal information for non-UBIP purposes (e.g., marketing, offering of additional services such as vehicle location services or assistance in emergency situations).

Insurers should, where possible, facilitate drivers using their personal UBIP data for the purposes of entering into a contract with another insurer including enrolling in another insurer’s UBIP program.  
 

A consumer’s enrollment in a UBIP program involves the agreement by the consumer and insurer to additional legal rights and obligations outside of those in the standard auto insurance policy.  In Ontario the mechanism for amending the standard auto policy is by way of an endorsement form which must be approved by the Superintendent. 

 Insurers may also be required to provide the Superintendent with any advertising or promotional material proposed for use in relation to their UBIP programs to ensure that it is clear, fair and not misleading.

Complaints, Inquiries and Customer Support

Insurers must be sure to provide adequate customer service support  and outline appropriate mechanisms, enquiry management, and resolution systems to respond to customer questions, concerns and disputes.

Driver Education and Transparency in Rating and Risk Classification Systems

To encourage safe driving and ensure transparency, it is important that the rating model for a UBIP program be clearly communicated to the consumer at all times, beginning prior to enrollment and continuing through to each policy renewal. The impact that a consumer’s driving data has on the premium must be clearly articulated including a clear explanation of how to qualify for a discount, the period being measured to calculate the discount, the maximum or minimum of that discount, and regular feedback on driving habits to the consumer.

Changes in Rating

Consistent with the existing policy renewal process in Ontario, any change in rating on a policy must be done in accordance with s. 236 of the Insurance Act.

Limitations on Collection and Use of UBIP Data for Insurance Purposes

UBIP programs, including program-provided devices and applications, should collect and use UBIP data solely for discount-setting purposes, and not to decline, cancel or refuse to renew risks or to confirm rating criteria currently used.

General Rate-Filing Information
 

Any UBIP program must be filed and approved by the Superintendent. It is recognized that there may be no Ontario-specific data to provide in a filing.  However, FSCO is supportive of innovation and, as with other rating factors new to the market, is willing to review data and the amount of the discount charged in other jurisdictions.UBIP-related rates and risk classification system elements must be just and reasonable and otherwise satisfy the statutory standards applicable to all rates and risk classification systems.

UBIP Program Costs and the Impact on Insurer Expenses

To encourage drivers to participate, insurers should cover all costs of enrolling in a UBIP program including the cost of any device installation and any ongoing costs of operation or maintenance. Insurers must clearly demonstrate the up-front or start-up costs associated with developing and introducing a UBIP program, as well as all ongoing maintenance and other expenses associated with offering the program, including but not limited to all costs associated with the UBIP device, data transfer and analysis, marketing and any third party provider contracts.

Reasonability of UBIP assumptions and the provision of adequate support   

Proposed UBIP models may first be reviewed and approved by FSCO in principle, following which an insurer would make a formal filing for Superintendent’s approval. Approval of the filing could be made conditional on further filings being required at scheduled intervals to provide the necessary continued support for the UBIP rating system.

General Data Considerations: accuracy, security, storage, at termination 

Before any UBIP data is used for rating purposes, reasonable efforts must be made to ensure that the data is accurate.

Insurers must also ensure that the data capture, transmission and analysis are all done within a secure environment.

Insurers and third parties should delete or anonymize personal information once there is no clear business need to retain the data.  

Insurers must ensure that no further data is received or accessed after a consumer terminates participation in a UBIP program or terminates the policy.

Roles and Responsibilities: Insurers and Third Party Providers 

FSCO expects that insurers will have written contracts with each third party provider to confirm:

• the provider’s ability and commitment to ensure a level of personal information protection equal to or greater than that expected of the insurer, and to comply with all applicable laws and regulations,
• that the service provider has the required service capability, and
• that succession issues are addressed to ensure a smooth transition when ending or varying an agreement with a provider.

Insurance News - Sunday, October 6, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Sunday, October 6, 2013:

• Man lobbying government to have convicted distracted Ontario drivers receive demerit points.
• A study by Liberty Mutual in the U.S. finds that adult children avoid discussing concerns with senior parents’ driving.
• The insurance industry officially announces CANATICS -- Canadian National Insurance Crime Services with the appointment of a CEO.  The organization is to use sophisticated analytics to support the identification of fraudulent activity.
• Not what you would expect but a new study indicates that Toronto countdown crosswalks have led to increase in pedestrian collisions.
• Woman charged with selling over 300 fake auto insurance policies to people in the Detroit area.

Insurance News - Friday, October 4, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Friday, October 4, 2013:

• Toronto woman accused of bilking fellow Filipinos of over $500,000 in a phony chiropractic clinic scam, pleads guilty to 16 counts of fraud.
• The Ontario government continues to consider an overhaul of its definition of “catastrophic impairment."
• First privacy breach under Obamacare has already occurred: In Minnesota confidential information accidentally sent to broker.
• In case you were wondering, the U.S. government shutdown may impact on the P&C insurance industry.
• Highway to become Britain's first Internet-connected road and could pave the way for self-driving cars.

Insurance News - Thursday, October 3, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Thursday, October 3, 2013:

• U.S. survey indicates most insurance policyholders would prefer to have a simple explanation of their insurance policy in terms they can understand and have policy details explained in a brief, one-page summary.
• By investing in telematics and setting up the Independent Broker Resources Inc (IBRI), brokers are signalling that they are prepared to compete with direct writers who currently dominate UBI.
• On January 1st California will become the 8th state to allow policyholders to get their policy renewals delivered electronically.  I understand FSCO's view is that there is no legislative barrier to electronic policy renewals in Ontario.
• The good news is the number of deer-auto crashes has dropped off in the U.S. The bad news is more deer are dying from disease. 
• Thomson Reuters has a new white paper explores the growing presence of organized crime in insurance fraud and it's free to download.