Dispute Resolution System Review Is Seeking Submissions From Stakeholders

On August 23, 2013 Ontario Minister of Finance Charles Sousa announced that he had appointed the Honourable J. Douglas Cunningham, former Associate Chief Justice of the Ontario Superior Court of Justice, to conduct the review of Ontario’s dispute resolution system.  

Mr. Cunningham is seeking stakeholder perspectives on the Ontario auto insurance dispute resolution system and the Ministry of Finance has posted on their website an invitation to stakeholder so make submissions.

Written submissions can be sent to the Ministry of Finance on or before September 20, 2013.

Mr. Cunningham is expected to deliver an interim report to the Minister of Finance in October 2013, and a final report in February 2014.  

Insurance News - Thursday, August 29, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Thursday, August 29, 2013:

• The courts are turning their attention to the dangers of texting and driving. A New Jersey appeals court ruled that a person could have a legal duty to avoid texting with someone who is driving.
•  Only five remaining U.S. states have no prohibition whatsoever on texting while driving.
• Auto insurers shouldn't just focus on claims fraud.  The latest trend in the U.S. is underwriting fraud by applicants who conceal or misrepresent information.
• Insurers love to insurer safe drivers.  So what is the safest city in America to drive in? Fort Collins, Colorado according to Allstate claims data. 
• Get ready to hand over control over the steering wheel because Nissan is planning to introduce their first self-driving cars by 2020.
• FSCO officially eliminated their mediation backlog as of August 19th but now they will have to focus on a build up of arbitration applications.

FSCO Lowers ROE Benchmark to 11%

When approving filed auto insurance rates from individual insurance companies FSCO has allowed a reasonable rate of return. In his 2011 Annual Report, the Auditor General of Ontario discussed the changed economic environment since 1996 when the return on equity (ROE) benchmark was last updated and recommended that it be reviewed. The Ontario Government endorsed the recommendation in the 2012 Ontario Budget.

 FSCO selected two consultants (Dr. Fred Lazar and Dr. Eli Prisman of York University) to conduct the ROE review for automobile insurance. The ROE review included consultation with stakeholders and is now complete and is posted on the FSCO website.

FSCO uses an after-tax , return on equity ( “ ROE ”) benchmark in the rate review process for rate filings by auto insurance companies in the province. The benchmark was initially established at 12.5% in 1988. In 1996 the ROE benchmark was reduced to 12%. The ROE benchmark is one of many variables used in the rate review process .

Three other provinces (Nova Scotia , New Brunswick and Newfoundland and Labrador) use an ROE benchmark ranging from 10% to 12%.

In carrying out their review of FSCO’s ROE benchmark the consultants examined various approaches and settled on the Capital Asset Pricing Model (CAPM) , which is a widely accepted methodology for estimating a company’s cost of equity capital

The consultants concluded that the current cost of capital for insurers is below FSCO’s current 12% after-tax ROE benchmark. They noted , however, that the current risk-free rate is abnormally low as the Bank of Canada deals with the aftermath of the 2008-9 economic and financial crisis and likely underestimates what the risk-free rate might be under more normal economic conditions.

Consequently, the consultants concluded that it would be inappropriate to apply the CAPM simplistically, noting that if it had been applied continuously from 1995 with appropriate risk-free rates and market risk premiums, the resulting ROE would have moved sharply from year to year, in some cases changing by more than 150 basis points. To address the volatility in the application of the CAPM model, the consultants proposed moving to a 5 or 10-year rolling average for the ROE benchmark, utilizing the CAPM results calculated in the report 

If a 10-year rolling average were used to determine the ROE benchmark, for 2013 the benchmark would be between 11.20% and 11.28%. If a 5-year rolling average were used , the benchmark for 2013 would be between 10.40% and 10.56%.

 As a result, FSCO has determined that it will now be using an 11% ROE as a benchmark for Automobile Insurance rate filings, effective immediately.

Insurance News - Monday, August 26, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Monday, August 26, 2013:

• Another U.S state (Illinois) allows drivers to use phones as proof of auto insurance coverage but still no initiative in Canada.
• Illinois also now has higher minimum coverage for third party liability. The new amounts are $25,000 for injury or death of one person (up from $20,000) and $50,000 for injury or death of two or more people. Still one of the lowest in terms of TPL coverage. 
• According to a LexisNexis Insurance Telematics study 36% of consumers would switch auto insurers to receive usage-based insurance discount. 
• Do people with luxury cars drive differently? Apparently they do.
• Posting on Facebook about driving drunk got a teen arrested when he bragged about hitting another car.

Insurance News - Saturday, August 24, 2013

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

• A Cornell University study based on interviews of industry members suggesting that prior approval of auto rates does not benefit consumers.  Although most experts agree that promoting the affordability and availability of auto insurance are appropriate objectives for regulators, they express strong disagreement with many of the tools commonly used by regulators.
• Bad news for older truck drivers; it seems that employees age 55 or older who drive as part of their jobs are more likely to be killed in accidents than younger colleagues because of declining cognition and greater susceptibility to injury. 
• Mixed reviews on the government's strategy to reduce auto insurance rates as consumers will need to wait 2 years (or longer depending on when their policy is up for renewal) to see the full 15% reduction.
• As well, the amendments to the Automobile Insurance Rate Stabilization Act, 2003 were proclaimed in force effective August 16, 2013. 
• Driver surprised to learn her auto insurer has launched a lawsuit without her knowledge.  Her insurer has used section 24 of the Repair and Storage Liens Act to resolve a dispute over storage costs.
• Newly licensed teens often drive older vehicles short of safety features that might lessen injuries in the event of a crash.

Ontario Government Moves Forward On Its Rate Reduction Strategy

This week the amendments to the Automobile Insurance Rate Stabilization Act, 2003 (AIRSA) were proclaimed in force effective August 16, 2013. 

In addition, the government filed an Industry-Wide Rate Reduction Target Regulation which calls for an average rate reduction of 15% by August 15, 2015.  The government is also aiming to make an average 8% rate reduction by August 15, 2014. It will also expect a report in January 2014 from FSCO to show an approved rate reduction of 3% to 5%.

This was followed by FSCO releasing a bulletin that begins the process for insurers in Ontario to refile their auto insurance rates. 

Also announced today was the appointment of  Douglas Cunningham also has been appointed to lead a review of Ontario’s auto insurance dispute resolution system and make recommendations on transforming the current system.  Mr.  Cunningham is a former Associate Chief Justice of the Ontario Superior Court of Justice.

Insurance News - Thursday, August 22, 2013

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

• California could be the 5th U.S. state to allow e-delivery of insurance documents. A state Senate bill would allow policy renewals to be sent electronically to policyholders’ computers, tablets and mobile devices.
• Eventually insurers will need to move beyond discounts to attract consumers to user based insurance.  After all not every driver can be given a discount once UBI becomes mainstream.
• Insurers looking for ways to stand out in terms of the kind of billing experiences they are providing policyholders using technology such as portals, websites and mobile apps. More and more consumers prefer online payment systems.
• Georgia is most expensive state to own a car and Oregon the least expensive. Although insurance costs are part of the difference, the gap is largely unrelated to car ownership but rather state taxes.
• Ontario court rules in favour of the government thereby allowing new regulations governing physiotherapy for seniors to take effect immediately.  The government claimed the existing system delivered by for-profit clinics was being abused.
• Study suggests gender differences in Post Traumatic Stress account for why women are more at risk after a motor vehicle accident.
• Finally, a Minnesota man has lost his driver's licence for driving too slow.

Insurance News - Tuesday, August 20, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Tuesday, August 20, 2013:

• Fatal collisions by 'distracted drivers' up 17% in Canada and distraction surpasses impaired driving deaths in 3 provinces.
• One in five fraudulent claims are never detected so here are five keys to countering claims fraud.
• According to the Insurance Research Council, in 2009 the proportion of uninsured drivers in the U.S. was 13.8%. - The state with the highest rate was Mississippi at 28.0% and the lowest state was Massachusetts at 4.5%.
• Another article on telematics which is now reaching the mainstream media: New software allows insurers to track driving habits and personalize premiums.
• The pattern is the same in every jurisdiction.  In the U.K. as auto insurers tighten up claims handling, fraudsters are moving away from just exaggerated claims to staging accidents.

Insurance News - Thursday, August 15, 2013

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

• There are 41 U.S. states with distracted driving laws on the books. So is here adequate enforcement and are the laws making a difference?
• A study by JAMA Pediatrics has evaluated teens with ADHD who have also experienced distracted driving and it shows that they are even a greater driving risk. 
• The cost of driving is delaying teens in getting licensed. Since they tend to be high risk drivers does that work out to be a good think or bad thing?
• A Metro Vancouver project is monitoring private cellphones to track traffic jams using anonymous GPS data.
• In St. Petersburg, Florida, 60% of the city’s car thefts happened because the victims had left their keys inside.
• Data monitoring is saving some people money on their auto insurance, yet some people will end up paying more.  But didn't we always know this would happen?

Why is Esure insurance the perfect firm for all your insurance products?

Whether we like it or not, Esure insurancecompany has indeed overcome many obstacles in its road to success. Founded in the year 2000, the firm has enjoyed tremendous growth and this has seen it attracting more than a million customers in a short period of time. The popularity of Esure insurance as a formidable insurance service provider stems from the fact that the firm believes in designing products that conform to the expectations of customers. Since its formation, the firm has continuously and tirelessly worked towards ensuring that all the needs of customers are met. This has had a positive impact if the recent spate of success is anything to go by.

In answering the question why Esure insuranceis the perfect firm for all your insurance needs, we need to critically look at the role it plays as well as the kind of products that it avails to its loyal customers. Esure believes that success without due diligence and commitment to principles set is unattainable. The firm believes that customers must be treated right and that effective research should be carried out to ensure that the products unveiled mirror the expectations of customers. With the car insurance policy from esure, customers can be expected to enjoy 24 hour support through phone calls and online chats. Any queries that customers have can be adequately answered through dedicated staffs that have a deep sense of knowledge on all the products offered in the firm.

Comparison of the car insurance quotes can be done online which means that one does not need to contact a broker or an agent before he can get quotes. This can be easily ascertained by visiting the website and comparing quotes. The home insurance cover offered by Esure on the other hand provides holders with free cover for emergencies at home in the first year. However, this is specifically meant for customers who buy the cover online. There is also free family legal protection designed for online customers. The cover essentially looks forward to compensate policy holders against any form of loss or eventuality that occurs with the subject matter covered.

This could be burglary, home being destroyed by fire among many other things. In retrospect, Esure insurance has scaled the ladders of success because it has put in place proper mechanisms to ensure customers are satisfied beyond measure. Their qualified pools of professionals have been detrimental in providing customers with the much needed advice especially as concerns insurance products. The firm has adopted the latest technological features in its attempt to meet and exceed the expectations of its customers. Its strategies have worked in its favor and this can be seen from the wondrous success it has enjoyed within a short time. If you are looking forward to enjoying great insurance products at unbelievable prices, then Esure is without a doubt the place for you. The professionalism and proven success is without a doubt the platform upon which the success of Esure is derived.

Will Ontario's Experience With Licensing Clinics Be Better Than Hillsborough's?

Florida's Second District Court of Appeals has effectively ended Hillsborough County's attempt to regulate clinics that enabled an epidemic of staged auto accidents.  The appellate court upheld an injunction issued in January that blocked enforcement of the ordinance.

Back in January a Circuit Court judge issued a temporary injunction against the county preventing it from enforcing licensing requirements for clinics that do most of their business treating people injured in auto accidents.

The County Commissioners passed the ordinance in September 2011 in an effort to stop staged accidents which were used to collect money under Florida’s personal injury protection (PIP) insurance law. Florida law requires auto drivers to carry $10,000 in PIP insurance. Law enforcement and the insurance industry said criminal rings defrauding the system were aided by fake clinics that billed insurance companies for bogus treatment.  The Hillsborough ordinance requires that operators of certain clinics obtain a county licence, offer proof that they are associated with a medical doctor, don't employ convicted felons in any positions and submit to random inspections.

About 70 clinics had been approved for licences under the ordinance, which exempted medical providers whose businesses don't rely on crashes or that carry some other forms of accreditation. Enforcement of the ordinance has been on hold since the lower court ruling late last year.

The county noted that there was a 62 percent decrease in the number of staged accidents following the introduction of the ordinance.  Many of the fraudulent clinics just closed which impacted on the number of staged accidents and questionable claims.

About 30 facilities argued that the county ordinance unlawfully sought to pre-empt state law under which they are licensed by treating the clinic owners in Hillsborough County differently than any other clinic owners in the state  They also said it had an arbitrary and subjective process for people challenging the denial of a licence, subjected them to unlawful searches from a broad array of law enforcement and included other requirements that made it all but impossible for otherwise legal clinics to operate.


It is still unknown how the county will respond to the decision. 

As Ontario moves towards the licensing of clinics operating in the auto insurance system, there may be some lessons to learn from the Hillsborough experience. 

Statutory authority to introduce a licensing system for all clinics in Ontario is a much better approach than Hillsborough going out on its own.  FSCO has been given jurisdiction to license the clinics by the Legislature.  However, in developing and enforcing business standards for clinic owners and operators, the regulator needs to be cautious and ensure that it does not act in an arbitrary or subjective manner.  Reputation alone cannot be the basis for denying a licence.

Insurance News - Wednesday, August 14, 2013:

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Wednesday, August 14, 2013:

• Court challenges by clinics in Hillsborough County, Florida have pretty much killed the county ordinance requiring licensing for clinics treating auto accident victims.  Less likely to happen in Ontario since province has created statutory authority for licensing system.
• Grumblings from New Brunswick where auto insurers anticipated higher accident rates and therefore charged drivers excessive premiums leading to excessive profits.
• Vancouver's transit authority is considering driverless buses guided by computerized maps and laser technology.

Insurance News - Tuesday, August 13, 2013

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

• According to a survey by Hanouver Insurance Group, 60% of customers of direct writers eventually return to independent agents.
• Another study has found that insurance customers are more likely than other types of consumers to switch after bad service.
• It appears as if a significant proportion of drivers is not open to the idea of user based insurance according to the company with the largest number of policyholders enrolled in its UBI program.

No Fee Increase For Health Care Providers In 2013

A recent bulletin issued by the Financial Services Commission of Ontario released an updated Professional Services Guideline.  The main purpose of the revised Guideline was to recognize that kinesiologists are now regulated health professionals as defined in the Statutory Accident Benefits Schedule now that they are governed by the College of Kinesiologists of Ontario.

In an effort to avoid increasing costs in the auto insurance system, FSCO has not changed the hourly rates in the Guideline from the 2012 levels. This is in line with the commitment by the government to reduce auto insurance rates by 15% as outlined in the 2013 Spring Budget. The hourly rates of kinesiologists have also not changed.

The revised Guideline is effective August 3, 2013 but technically there is no change.

The FSCO bulletin and revised Guideline can be found here.

Insurance News - Thursday, August 8, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Thursday, August 8, 2013:

• Data released by the National Highway Traffic Safety Administration suggests that just as drinking and driving can be deadly, so is drinking and walking, Thirty-five percent of  pedestrian fatalities had blood alcohol content levels of .08 or higher, the legal limit for driving. 
• Ever since the recession hit in 2007, Americans have been driving less and less. And a big chunk of that decline has been due to the fact that kids these days aren't even getting a driver's license. Why?  Too much hassle.
• Another impact of the recession, he average age for vehicles in America has climbed to an all-time high of 11.4 years. 
• The Insurance Bureau of Canada has launched a database of damaged vehicles from the Alberta and GTA floods.

A Sneak Peek into Esure Insurance Firm and What It Offers

Hitherto, scores of people around the globe did not pay attention to the sensitive subject of insurance. Apparently, a good number of people go for insurance because they are obligated by law or simply because conditions dictate the same. To this group of individuals, if it were up to them, insurance would not be among their must have things. Either way, insurance is essential and something that each and every mortal must embrace. Before we delve into this very important subject, it’s germane that we understand what the term insurance is. In simpler terms, insurance refers to the transfer of risk from one person to another with a promise of payment.

The person who seeks for insurance is known as the insured while the person who undertakes to take the risk is known as the insurer. The contract of insurance stipulates that the insured needs to make regular payments known as premiums on the subject matter of insurance. It’s imperative to note that a person can insure anything property and seek for compensation in the unlikely event of a loss. Esure insurance is one of the best insurance companies known for its effective insurance policies, covering of a wide variety of assets as well as its endeavors to create awareness on the importance of taking an insurance cover.

The insurance firm continues to be a model of excellence and an industry leader in good insurance practices. If you are still wondering why Esure insurance firm is one of the most respected firms, you need to read on. With the surge in the number of insurance firms that take pleasure in swindling individuals of their hard earned cash whenever there is claim of compensation, Esure has indeed set the bar high in cultivating professionalism and trust among its clientele. The firm believes that the sole purpose of insurance is to provide clients with an avenue or platform through which they can get adequate compensation for their assets without resorting to Machiavellian tactics that end up distressing clients.

The firm offers a number of covers that aim at providing clients with a wide array of options. Such covers include: car insurance, life insurance, home insurance, personal liability cover among many others. The firm’s policy is to offer superior services aimed at meeting and exceeding the expectations of it’s over a million satisfied customers. Esure insurance open minded approach towards issues and an internal policy of ensuring customer satisfaction can be rightly attributed to its phenomenal success in recent years. The premiums set by this firm are affordable and calculated scientifically to ensure that clients pay for what they are entitled to. 

The firm has continued to be top of the tier in provision of professional insurance services and this has gone a long way in ensuring that customers get nothing short of their desired services. The continued policy of customer satisfaction seems to have positively impacted the well being of the company if the recent spate of hitherto unseen success is anything to go by. In a nutshell, if you are seeking to enjoy great insurance services from a reputable firm, then Esure insurance firm is always your reliable and committed partner.

Insurance News - Tuesday, August 6, 2013

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

• A U.S. study has revealed that insurers couldn’t accurately detect fraud potential based on any single behavioral characteristic viewed in isolation. Precise detection comes from bringing together multiple characteristics to create an overall picture of the probability of fraud. 
• Here is an interesting consequence of high auto insurance rates in Michigan. In Detroit where rates are highest, there is low voter participation rates because voter registration is tied to one's drivers' licence. Drivers are choosing insurance fraud over voting.
• Nearly 500,000 motorists in 18 New Jersey towns are receiving notice about a $4.2 million settlement the from a class-action lawsuit over tickets generated by red light cameras.
• Quebec Tribunal agrees with SAAQ which had rejected Montreal developer’s auto insurance claim after would-be assassin shot him in his car.
• U.S. hospitals are billing auto accident victims directly to get around discounted rates from health insurers in order to maximize revenues. The victims must pay the hospital out of their auto insurance settlement.

Auto Insurance Florida

If you live in Florida you have to purchase auto insurance policy like other states as soon as you buy a vehicle to protect you and your cars. It’s mandatory for every Florida citizen. But the insurance is high. To get the best auto insurance in Florida you should know every aspect about car insurance policy and companies.

In this article I will share about Florida auto insurance, car insurance laws, auto insurance companies and minimum requirements, and cheap auto insurance quotes. After reading this post you will get the complete ideas how you can buy the best auto insurance deal.

Florida Auto Insurance Minimum Requirement

Florida auto insurance minimum requirement is the least level of insurance coverage you must buy. But buying minimum coverage is not adequate because the car accident can cost far more than minimum coverage policy. The Florida state auto insurance minimum requirement by state laws is 20/40/10 that means $20,000 for injury liability for one person, $40,000 for injury liability for one accident and $10,000 for property damage protection. The insurance information institute recommends that the car owner should carry minimum $100,000 policy coverage per person and $300,000 policy coverage per accident. You may not drive your vehicle frequently but you must carry minimum liability coverage to live in Florida.

Florida No-Fault Auto Insurance

No-fault law auto insurance in Florida is basically included the coverage where no bodily injures occur and to meet the Florida state’s requirement car owner must carry $10,000 per person coverage and $10,000 property damage protection. No-fault law requires having basic liability coverage, so to get better protection you should check other coverage options.

Florida Auto Insurance Quotes Comparison

To get the best car insurance rates in Florida it is important to shop around. Car owners often end up paying higher premium for not collecting and comparing auto insurance quotes from different companies. There are many online resources such as many website which offer free auto insurance quotes within few minutes, request quotes from at least 3-5 companies and compare them and choose the cheapest one within your budget.

Auto Insurance Companies Florida

There are many auto insurance companies those have licensed and among them all may not suitable for you. If you haven’t any current insurance policy, you should contact with your nearest auto insurance agencies and ask what type of insurance coverage will work for you best. You can also search the best auto insurance companies on internet. While choosing the best and cheap auto insurance companies you have to consider some factors. The best and cheap auto insurance companies in Florida are Livertymutual auto insurance, GEICO auto insurance, Titan insurance, Direct auto insurance, Mercury auto insurance, Allstate auto insurance, Nationwide auto insurance, Travelers insurance and The Hartford auto insurance.

Florida Auto Insurance Details

There are mainly three types of insurance coverage the insurance companies offer in Florida. These are PIP (Personal Injury Protection), BIL (Bodily Injury Liability) and PDL (Property Damage Liability). But many companies also offer collision, comprehensive, uninsured and underinsured motor coverage. Under Personal Injury Protection coverage the insurance company will pay your injury related expenses regardless of who was at fault in the accident. This coverage includes medical expense, lost wages and lost services.

How to Find Cheap Auto Insurance in Florida

It’s true that among the auto insurance companies there are some companies which offer cheap rates, but you have to be smart enough to find them. For new car owners they have to follow few methods about how to get cheap insurance company. Normally the insurance rates are determined by considering your driving records, car age and prices, driving courses and license, and the city you live. If you have good driving records and have attended few drivers’ safety courses you will get cheap rates from the company.

When you are looking for auto insurance in Florida you have to do little home work to find the best auto insurance company. Accident happens every day in every city and auto insurance provides protection against them, it will be better to buy auto insurance coverage when you have vehicles.

Insurance News - Friday, August 2, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Friday, August 2, 2013:

• The Federal government is taking another run at removing the HST exemption for independent medical evaluations or assessments. A tax lawyer suggests they may the proposed amending language may fail.
• Driving to the beat of the music may lead to higher auto insurance rates. Here are some infographics which demonstrates how the music drivers listen to in the car has an impact on driving behaviours, from accidents to speeding tickets.
•  If you think driverless cars are just a pipe dream, well four U.S. jurisdictions are setting ground rules for self-driving cars on the roads.
• An interesting articles about the ethics of saving lives with driverless cars.  Things get murky when you factor in that some people might actually be killed by a robot car.