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.

Insurance News - Saturday, September 28, 2013

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

• NDP claims Liberals have backtracked on a promise to lower the profit benchmark to 9% (FSCO has set it at 11%) and now the government will have problems reducing rates by 15. 
• Court of Appeals of Ontario confirms that it’s illegal to hold a cellphone while driving even if it’s not transmitting and no matter how briefly it’s in a driver’s hand.
• WiFi-enabled vehicles are coming to Canada.  So being able to better access the Internet on smartphones, tablets and laptops in cars is a good thing?
• Auto insurers with a "wait and see" strategy for usage-based insurance could end up underpricing bad risks that UBI insurers will avoid.
• More evidence that self-driving cars are on the way: Nissan’s self-driving car, the LEAF, has been granted a license for public roads in Japan.
• Michigan House of Representatives bill would introduce electronic proof of insurance as a mechanism to combat fraudulent insurance slips.

Insurance News - Wednesday, September 25, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Wednesday, September 25, 2013:

• California regulators have made technology-based ride sharing services legal in the state including minimum insurance requirements, obviously the taxi industry is not happy.
• How advanced are telematics in the U.S.? Allstate’s driver tracking program has now logged a billion miles. 
• Washington State man sentenced to 6 months in prison for selling more than 950 counterfeit vehicle airbags on eBay and Craigslist.
• NDP Leader Andrea Horwath accuses insurance industry of jacking up auto premiums to compensate for mandated 15% rate reduction.
• While the first self-driving cars are coming soon, overcoming motorists’ distrust of them may be a challenge.
• One reason is that self-driving cars are progressing faster than rules of road.  A driver could be charged with distracted driving if not paying attention to the road.

Insurance News - Tuesday, September 24, 2013

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

• What would happen if your self-driving car was to cause a crash in Ontario? Under Ontario's current system you would be at-fault which is no different than if you caused a crash using your cruise-control but your insurer will pay.
• While the first self-driving cars are coming soon, overcoming motorists’ distrust of them may be a challenge.
• With insurers no longer able to use gender as a rating factor in calculating premiums under new EU regulations, the use of telematics to become critical.
• Toronto Sun article suggests GISA numbers show Ontario’s auto insurers can easily afford a 15% reduction in premiums over 2 years.
• NDP Leader Andrea Horwath accuses insurance industry of jacking up auto premiums.

Mike Colle Introduces Bill For New Drivers And Minor Accidents

Liberal MPP Mike Colle who is familiar with the auto insurance file while Parliamentary Assistant to former Finance Minister Greg Sorbara introduced a Bill, the Insurance Amendment Act (Minor Accidents and New Drivers), 2013 on September 18, 2013.   

Bill 100 if passed with require that a risk classification system used by an insurer to determine rates for auto insurance could not consider minor accidents and would provide for lower rates for new drivers by crediting new drivers, in certain circumstances, with additional years of driving experience.

Minor accidents are accidents that result in $2,500 or less in damages, no injuries or death, and that did not result in an insurer making any payments that were not fully reimbursed by an insured driver.

A new driver is disqualified from receiving additional years of credit in a number of circumstances, including if the driver has been found to be more than 25% at fault in a claim arising from an accident, has been convicted of certain driving offences or has had his or her driver’s licence suspended for non-payment of certain fines.  The Bill is similar to an amendment passed in New Brunswick for new drivers called "First Chance" as part of reforms in 2005.

The Bill would reduce rates for new drivers and would prevent rate increases for anyone at-fault in an accident and paid the cost of repairs out of pocket as long as the repairs are less than $2,500.

On August 24, 2013, the Minister of Finance, the Hon. Charles Sousa, issued a policy statement that directed FSCO to review ways to “treat first-time drivers fairly” and to study the mandatory collision reporting threshold as a “potential cost reduction” initiative.