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Driverless Cars and the Future of Insurance, by Steve Anderson.
I am becoming convinced that the impact of this technology on the insurance industry will be sooner and greater than most people currently realize. While the future is notoriously difficult to predict, the following are a few reasons why I am paying attention.
In 2008, a driverless car could go about two miles on a closed course. In 2012, Google’s driverless cars logged over 300,000 miles on actual roads. The technology appears to be developing faster than most realize.
Volvo—known for auto safety—predicts they will be able to eliminate crashes for anyone driving its cars by 2020. That’s less than seven years from today. Nissan has also announced similar plans. It seems that Google has sparked a technology development race in the auto industry—and this will spur rapid technology innovation.
If accidents are reduced, claims will drop. Google predicts it can eliminate 90% of auto accidents. While this number is hard to believe today, even if the drop is only 25% of today’s level, a $1,000 car insurance policy would drop to $750. What happens to industry revenue including insurance agents’ commissions?
This advance will disrupt other industries. If there are fewer accidents, we will need fewer emergency rooms, hospitals, doctors, prescriptions, tow trucks, collision repair shops, and replacement automobiles. How will each of these industries respond? And the need for insurance for each of these industries will be reduced further, affecting insurance agents and carriers.
A full self-driving car may be less of an issue in the near future than driver assistance safety technology. These systems are already being included in new cars and may have a much larger, and earlier, impact on claims cost.
The U.S. Department of Transportation is already working to require black boxes and back-up cameras in new cars. The government could be pushing the use of this technology to help control health insurance cost and to reduce the need for new roads and road expansion. That will accelerate adoption.
It may be that countries outside the United States will adopt this faster than here. Think about China and Brazil.
As an industry, we should begin thinking and talking about these issues now. While this is not a trend we can stop—we can start thinking about how to adapt. In the last five years, there has been a continued progression of companies that have gone out of business because they were not able to look into the future and take appropriate steps to adapt.
Daniel Burrus, in his book Technotrends: How to Use Technology to Go Beyond Your Competition, said, “If it can be done it will be done. If you don’t do it, someone else will.”
Steve Anderson is a leading authority on insurance agency technology. He is a prolific writer known for his knack for translating “geek speak” into easily understood concepts. Check out his free weekly newsletter “TechTips” and other resources for the insurance industry on his website.
As a valued client of Expo Insurance Brokers Inc , recently you would have received a letter advising you we are moving of office location and informing you we are running a Christmas Contest for our Clients. Don’t forget to enter today just follow the rules and instructions on your letter and you will be entered to win.
Happy Holidays from Expo Insurance!
This Holiday season, Expo Insurance is proud to support the Yonge Street Mission Dinner Program. Every year, the mission receives over 40,000 families seeking nourishment. Around the Holidays, the mission provides special meals and toys for all those in need. Visit the website for more information: http://www.ysm.ca/
Expo hasn’t stopped there. As a company we also support the Salvation Army Mississauga Temple. Our yearly donations assist the running on various programs, and assist those in need during the holiday and winter season. We encourage you to support a local charity or one of those listed above this Christmas. Visit the website for more information: http://www.mississaugatemple.com/
Working together with you in the community we Live, we are honored to help these well deserving organizations and encourage you to as well.
From all of us at Expo, we wish you a safe and happy holiday, Merry Christmas and Happy New Year.
New Address Effective Nov 18 2013
Expo Insurance Brokers Inc
5484 Tomken Rd
Unit # 9
(905) 212 7007
Ministry of Finance
Auto Insurance in Ontario
August 23, 2013
How auto insurance rates are set in Ontario
Auto insurance rates are determined by individual insurers using a combination of factors including driving experience, driving record, use and location of the vehicle, the type of vehicle driven, and amount of coverage and deductibles selected.
Legislation requires that the Superintendent of Financial Services review rates proposed by a company to see if they are just and reasonable, not excessive, and do not impair the financial solvency of the company.
The Financial Services Commission of Ontario (FSCO) regulates auto insurance in the province to protect Ontario drivers while encouraging competition in the auto insurance industry.
All auto insurers must submit proposed changes to their rates to FSCO for approval.
FSCO analyses rate filings taking into account actuarial evidence to confirm the proposed rates comply with the legislation and conditions above.
Once FSCO approves an insurer’s proposed rate change, drivers will see these new rates when their policies are renewed. Most policies are renewed annually.
Five Key Facts about the Financial Services Commission of Ontario (FSCO)
1. FSCO makes sure auto insurance companies follow the law
Drivers in Ontario have responsibilities and rights when it comes to auto insurance. This includes the responsibility to buy mandatory coverage and the rights to be treated fairly by their insurer, to have claims handled in a timely manner, and to file a complaint if necessary. FSCO helps to make sure these rights are upheld.
2. FSCO helps consumers avoid being victimized by fraud
There are many ways that honest consumers can become caught up in fraudulent schemes. For example, dishonest medical clinics may use a patient’s information to file false claims or tow truck drivers may collude with repair shops to falsify repair bills. FSCO’s website contains tips and educational materials to help people avoid this type of abuse.
FSCO can take action against tow truck operators, vehicle repair services, automobile storage services, legal advisors when not providing legal services and medical clinics who charge or solicit referral fees for or from auto insurance claimants.
Also, FSCO has a dedicated hotline that consumers can use to report suspected cases of auto insurance fraud. People now have a direct channel to report tips about suspected auto
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insurance fraud 24 hours a day, 7 days a week. Simple and fast, the hotline is accessible on
FSCO’s website at www.fsco.gov.on.ca/TipNow, as well as by telephone at 1-855-5TIP-NOW.
3. FSCO provides tips for drivers on how to find the best auto insurance rates
FSCO helps educate consumers on ways to save money on auto insurance. Through their
website, social media outreach and consumer awareness campaigns, FSCO shares tips on
finding the best auto rates.
These include tips such as:
• Establish a good driving history – this means driving carefully and obeying the rules of
• Choose coverage carefully – for example, it may not be cost effective to have Collision
and/or Comprehensive Coverages on a vehicle with a lower retail value.
• Pay premiums on time – failing to pay may result in the cancellation of a driver’s policy. If
this happens more than twice, the insurance may be more costly to re-purchase.
• Bundle home insurance with auto insurance.
• Use winter tires where needed – some insurance companies offer discounts.
• Insure all vehicles with the same company.
• Complete a recognized driver training program.
4. FSCO helps drivers resolve disputes with their insurers
If people are injured in car accidents and their insurers disagree about accident benefits, FSCO
helps settle these differences outside the courtroom in a timely manner through mediation and
arbitration services, as provided for in the Insurance Act.
5. FSCO helps keep rates reasonable
FSCO approves all insurance company rates before they are used in the marketplace. Rates
must be just and reasonable and appropriately reflect risk.
Expo Ins Brokers Inc. Advisory: GTA storm update 11 July 2013.
Our Insurance Company Partners have Claims Teams that are responding to a large volume of calls throughout the effected areas.
We are into the third day after the heaviest rainfall in GTA history. We wanted to update you on what we are doing and ask for your patience, goodwill and understanding.
The Insurance Company partners we have you insured with, have received more claims in the GTA (mainly West Toronto and Mississauga) the day after the storm than they received in a normal month of claims. This type of volume puts significant pressure on the entire claims infrastructure, from adjusters to appraisers to contractors.
Insurance Companies have assembled Claims teams consisting of internal staff and dedicated adjusters plus contractors they have certified to assist in emergency mitigation and repair.
Customer contact is underway
These claims teams have broken down the affected area by postal code and calls are already being made to customers, allowing the adjusting team to work within a small geographic area.
For our mutual clients with sewer back up coverage, here is what’s happening:
1) Emergency mitigation. The adjuster will meet with the customer, provide guidance on what to expect, review coverage and develop a plan to return the property to its pre-loss condition.
What the insurance contractors do in Phase 1:
• Cut out the affected drywall – in most cases 6-9 inches above the water mark.
• Remove all debris.
• Separate contents into salvageable and ‘send to the dump’ – then take an inventory.
• Set up blowers and dehumidifiers to run for a number of days to minimize mould and prepare for reconstruction.
2) Estimation. The estimators will return with the adjuster and together they complete an estimate of repair. The adjuster then meets with the customer to explain the options.
3) Repair. They will be encouraging “YOU” the customers to use their preferred vendor network (whose work we guarantee) but the choice of contractor is ultimately yours.
Patience and Understanding is Key:
Please expect delays. Under normal circumstances the timeline for Phase 1 is 24-36 hours, but because of the size of this event, the contractors can’t give a time estimate that is accurate.
Over the next several days, the Insurance claims teams, focus will be calling customers as this is the best way to start the claims process.
• Estimating will likely take another couple of weeks.
• Reconstruction is where it will be difficult to provide timeframes yet, but they will assess as they go along, once they can determine how many repairs the contractors are asked to complete they will have a better understanding and will keep you the client informed.
At Expo we recognize this is a very difficult time for you, but please rest assured that our Insurance Company Partners have teams of professionals working hard to get the job done.
Expo Insurance Brokers Inc.
Thu, 4th July, 2013 - Posted by (0) Comment|
Over the last several months there has been a lot of news coverage regarding the Ontario government and a commitment to reduce car insurance premiums by 15% in the May Budget of 2013. A couple of weeks ago that budget was passed by the legislative assembly.
We would like to draw to your attention the facts that very few details have been released about how and when any reductions will take place. The Government has made a commitment to offer lower rates for Ontario drivers with safe driving records and the average rate reduction of 15% will be done “within a period of time prescribed by regulations”. This wording has a lot of flexibility built into it, in respect to how this reduction will be handled and or implemented. We believe it is highly unlikely that a rate reduction will be implemented in 2013.
As soon as more details are released by the government we will do our best to pass on this information to you.
Expo Insurance Brokers Inc.