Insurance News - Friday, January 31, 2014

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Friday, January 31, 2014:

• Regulators, courts and city halls are struggling to define Uber. Is it a taxi company or a technology platform?
• Ridesharing taxi services stuck in insurance limbo.
• Can insurance discounts for installing text-blocking devices lead to fewer distracted drivers?
• New U.S. laws to be considered around the use and security of Big Data from automobiles.
• The first serious accident caused by an algorithm will be a major challenge to the fully driverless future.
• California consumer watchdog wants regulator to ban insurers from using driver's occupation and education in setting rates.

Insurance News - Tuesday, January 28, 2014

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Tuesday, January 28, 2014:

• Ontario-based insurers paid more than $25 million in claims for vehicles damaged in the December ice storms.
• Is the state of Ontario auto causing foreign property and casualty insurers to reconsider their business strategy in Canada?
• FSCO has released a revised MIG and OCF-18 to reflect SABS changes that become effective on February 1st.
• In Florida Personal Injury Protection coverage is projected to drop an average of 13.2% from a year ago because of anti-fraud reforms.  However, the overall reduction is only 1.2% because “no-fault” accounts for a small portion of auto coverage.
• With a spring provincial election still a strong possibility, a Forum poll from the weekend shows Conservatives at 36%, Liberals at 33% and the NDP at 26% as polling numbers show the race is even tighter.

FSCO Has Released a Revised MIG and OCF-18

FSCO has releasing a revised Minor Injury Guideline (MIG) and Treatment and Assessment Plan (OCF-18) that become effective February 1, 2014.

 

The revised MIG and OCF-18 reflect the recent change made to the SABS in which a pre-existing condition must have been documented by a health practitioner prior to the accident.  The change is reflected in Section 4 of the MIG which deals with impairments that do not fall under the guideline.  As for the OCF-18, changes have been made to the introductory Note box on page 1 and to the second question in Part 4.

 

Revised MIG is here.

Revised OCF-18 is here.

SABS amendment to section 38 (3) (c) (i) is found here.

Insurance News - Friday, January 24, 2014

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

• Will insurers begin to use social media posts (eg., Facebook) to evaluate risky lifestyles when calculating premiums? 
• Car theft victims are also using social media to track down stolen cars.
• Last year, more Torontonians were killed by cars (63) than by homicide (56). So why aren't we doing anything about it?
• Crash test indicate that tiny vehicles have major safety disadvantages.  Only the Chevrolet Spark had acceptable test ratings. 
• FSCO is in the process of launching their Arbitration eCalendar, which is expected to will streamline the arbitration booking process.

Insurance News - Monday, January 20, 2014

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Monday, January 20, 2014:

• The Automobile Association of America is urging insurers offering telematics to adopt its new “Consumer Rights for Car Data,” which the company says will protect drivers.
• An investigation has found that car history reports from CarFax and CarProof may lack key data.
• A Kentucky bill would eliminated the need to carry proof of insurance and allow police to check if driver is insured through a state database using a computer in the officer’s cruiser.  No need to carry a paper or electronic insurance card.
• New survey reveals that teens who feel their parents are good drivers are half as likely to have been in an accident.
• Tech meets red tape reality of working with government: When it comes to automated cars, technology companies and auto manufacturers are moving much faster than government regulators.

Ontario Moving Closer to a New Treatment Protocol for Minor Injuries

On a recent snowy morning, a group of auto insurance stakeholders got together at Lakeridge Health in Oshawa for an all-day information session on some of the research findings of the Minor Injury Treatment Protocol Project (MITPP).  This was the first public presentation (although it was by invitation only) of the research team's work.

The MITPP originated in FSCO's Report on the Five Year Review of Automobile Insurance which recommended that examining the feasibility of expanding the PAF Guidelines to provide a more extensive continuum of care and to include the treatment and assessment of other soft tissue injuries (Recommendation #23).  Following an open competitive Request for Proposal process, a two-year contract was awarded to team of researchers led by Dr. Pierre Côté from the University of Ontario Institute of Technology and the Canadian Memorial Chiropractic College in the spring of 2012.

The project team will be delivering a report to the Superintendent later this year that provides:

• Recommendations regarding a treatment protocol for minor injuries and
• Recommendations regarding a clinical predictive rules to screen for patients who may be a risk of developing chronic pain.

There have been significant progress made by the project team and to date have completed the following tasks:

• The project team has developed a methodology for developing a new tasks including a process for identifying relevant studies for consideration.
• The project team has updated the research carried out by the World Health Organization's Neck Pain Task Force (NPTF) study which was released in February 2008.
• The project team has also now finished reviewing research on the treatment of neck pain.

There are some significant tasks that still need to be completed before the final report is submitted to the Superintendent.  Those tasks include:

• The project team will need to complete the review of research on the treatment of other minor injuries, not related to neck pain (for example, headaches, low back pain, injuries to extremities, temporomandibular disorders, minor brain traumatic brain injuries).
• Make recommendations regarding a treatment protocol for minor injuries.
• Make recommendations regarding a clinical predictive rules to screen for patients who may be a risk of developing chronic pain.

The project team developed some rigorous standards which were used to decide whether to consider a study for the project.  Their literature search produced over 100,000 papers.  Only published studies that underwent peer review and followed appropriate research protocols were considered.  For example, opinion papers and unpublished documents were not included.  A team of graduate students reviewed the papers to determine if they met the standards.   Many studies were inadmissible because of small sample sizes or possible bias.  In the end fewer than 200 papers made the cut.

The day was filled by research associates presenting on topics related to the treatment of neck pain.  Unfortunately, I cannot report on any of the findings.  The information is being embargoed until it is published as a series of papers in a scientific journal later this year.  A similar approach was taken by the NPTF which published its finding in a special supplement of Spine Journal on April 28, 2008.

The final report of the MITPP will be considered by the government later this year.  Implementation will not only require the release of a new Minor Injury Guideline by FSCO but will likely require regulation changes and an extensive education campaign directed at health care providers, insurance adjusters and the public.

Insurance News - Saturday, January 18, 2014

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Saturday, January 18, 2014:

• Acquisitions in the Canadian insurance market continue with Desjardins Group set to acquire State Farm Canada businesses.  How much has Ontario auto contributed to State Farm's exit from Canada.  Will other foreign-based insurers follow?
• FSCO reports auto insurance rate approvals declined by 3.98% for entire market in the 4th quarter of 2013 4.75% for all of 2013. The rate change covers 66.55% of Ontario auto insurance market.
• The Ontario Divisional Court has denied a judicial review application in Federico v. State Farm. The case involved a dispute over the interest rate charged for late payments under the transitional provisions on the SABS (34/10).
• CANATICS has now chosen an analytics service provider to help expose hidden patterns of fraudulent behaviour.
• Ford, State Farm and University of Michigan are teaming up to unveil automated Fusion Hybrid research and test car to be used to make progress on future automated driving and other advanced technologies.
• The New York Department of Financial Services is inviting usage-based auto insurance filings. The state sees telematics as a means to combat distracted driving.
  
  
  
  
  
  
   

Ontario Auto Insurance Rates Beginning to Come Down Slowly

The first full quarter (4th quarter of 2013) of rate approvals following the government's announced rate reduction strategy have now been released by FSCO.  The regulator has been able to squeeze 3.98% in rate reductions from 66.55% of the market.  That's an average of 5.98% per insurer of those that filed in the quarter.  That is better than the 3rd quarter results in which only a 0.65% reduction was achieved.  Combined 98.95% of the market has refiled their rates and as the government reports, approved rates are down 4.66%.

The government is committed to bring down rates by 15% over a two-year period which likely makes no one happy - neither consumers or insurers.  Considering that it can take up to a year until new approved rates appear on renewals (depending when a driver's policy renews), consumers could wait up to 3 years to see the full 15%.

The question that remains is how successful will the government be in bringing down rates to the targeted level?  The regulator squeezed less that 5% out of rates so far and that was the easy part.  Those numbers reflect company projection of future benefit costs, investment returns, overhead costs and a profit margin.  Perhaps with interest rates set to increase there will be some wiggle room to lower rates further.  As well, if the benefit costs continue to remain stable as they have for over 3 years, insurers may adjust their reserves which might allow rates to come down.  The severe winter in Ontario means claims have likely been higher so I doubt there is much room there anymore.  Overhead costs don't change much so all that is left is a smaller profit margin.  Perhaps this is part of the motivation for State Farm to get out of Canada.  After all, they haven't been profitable in Canada in a number of years. 

The insurance industry is holding out for further changes to the auto insurance system which might change the cost structure enough to bring down rates further. The government has announced a few initiative which they hope with achieve that:

• The province will propose legislative amendments in the spring session based on recommendations of the Dispute Resolution System Review
• The province is consulting on the development of a province-wide system to oversee the towing industry and reviewing vehicle storage and collision repair practices
• Work is progressing on enabling health service provider licensing so that only licensed providers can get paid directly by insurers.

 The final 10% is going to be a challenge for the industry and the government.
 

Insurance News - Tuesday, January 14, 2014

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Tuesday, January 14, 2014:

• That unemployed adult child living in mom's basement may be a dependent under the SABS (State Farm v. Bunyan, 2013 ONSC 6670).
• Ontario may introduce draft legislation cracking down on rogue tow truck drivers as early as this summer.
• Politicians and lawmakers need to catch up with auto technology and consumer demand.
• Several U.S. states are allowing undocumented immigrants to get driver's licences, so will they buy insurance too?
• The next data privacy battle may be waged inside your car.
• Angry voters can mean radical change in Ontario elections (possibly this spring).

Insurance News - Thursday, January 9, 2014

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Thursday, January 9, 2014:

• Granite Health Solutions has become the first IME provider to be awarded with a 3-year CARF accreditation.  I've been suggesting that accreditation may address some of the poor quality IME work out there.
• US commercial truck drivers will need proof of medical certification from a medical examiner. The requirement will not apply to drivers with Canadian licenses. 
• A French company is coming to the U.S. to market a driverless, electric, open-air shuttle vehicle that seats eight that can do 30 mph.
• Studies are suggesting that Los Angeles' new Light Rail Line is reducing driving.  Meanwhile Toronto municipal politicians continue to dither.
• Google's self-driving cars have logged 300,000 accident-free miles but mostly on highways. Will they be as safe in city traffic? Will they actually save 30,000 lives?

Insurance News - Tuesday, January 7, 2014

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Tuesday, January 7, 2014:

• FSCO has issued a RFP for arbitration services to address the arbitration backlog that has developed following the elimination of the mediation backlog.  ADR Chambers is currently handling arbitration cases and the new contract will replace current contract with ADR Chambers.
• MTO is consulting on a pilot project to safety test self-driving cars. The pilot involves licensing test vehicles for developers that meet certain criteria and is similar to pilots in California, Florida, Nevada and Michigan - all jurisdictions are looking to attract technology and auto manufacturers to invest in their jurisdiction.
• Advice on getting cash after a crash from the at-fault driver to cover a car’s decreased value after an accident.  Though I don't believe insurers will cover diminished value law suits.
• Florida is the 30th state to allow electronic proof of auto insurance.
• More predictions regarding self-driving cars, sales are expected to hit 11.8 million by 2035 and almost all cars will be self-driving by 2050.

Insurance News - Friday, January 3, 2014

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

• Quebec insurer Industrial Alliance wants to introduce a telematics program for young Ontario drivers with the ability to lower their auto insurance rates based on usage.
• Are civil liability cases involving drunk driving putting an end to personal responsibility?
• The OPP is reporting a significant drop in impaired driving charges and suspensions during their Festive R.I.D.E. campaign.
• Study shows teens may begin their driving habits with great caution, but as months behind the wheel pass, they begin to multi-task at higher frequency rates – dialing cell phones, eating, and talking to passengers, etc. – and therefore greatly raise their risk of crashes and/or near-crash incidents.
• Nevada is introducing new road safety measure. The Nevada Department of Motor Vehicles will begin taking applications for and issuing driver authorization cards to Nevada residents who cannot meet citizenship requirements for a standard driver’s license or identification card.