A - EY Flashcards
EY
What is ICBC (Insurance Corporation of BC)?
provincial crown corporation (owned and operated by the province)
EY
ICBC’s role regarding mandatory basic auto insurance in BC
SOLE PROVIDER of mandatory basic auto insurance, called BASIC AUTOPLAN
Provides 5 coverages : TPL, UM, AB, Hit and Run, Inverse Liability
EY
How is additional auto coverage available in BC?
by ICBC’s package called AUTOPLAN OPTIONAL
OR
by the private markets
EY
5 challenges and (target outcomes) to BC auto insurance
FREQUENCY of accidents increasing
(must change high-risk driving behavior)
CLAIMS-PER-ACCIDENT increasing
(must change claimant behavior by product redesign)
SEVERITY of minor injuries is increasing
(must change focus from cash to prompt medical care)
PROPORTION of costs due to minor injuries is increasing
(cap pain and suffering
and reduce legal costs)
PREMIUMS do not cover claim costs
(must have sustainable and affordable premiums)
EY
3 opportunities to address failings in BC auto insurance
1) INCREASE ROAD SAFETY (BY CHANGING HIGH RISK DRIVING HABITS)
- cameras at intersections
- automated speed enforcement
2) AUTO PRODUCT REDESIGN
- cap pain and suffering for minor injuries
- increase AB (no fault compensation) for wages and medical payments
- increase proportion of premiums paid out in benefits
3) interim measures by ICBC
- claims mgmt improvements
- non-insurance investments
- change risk-rating model
EY
4 key streams in implementing BC’s auto insurance reform
1) policy and legislative framework development
2) road safety
3) product redesign
4) interim measures
EY
Guiding principles of an effective auto insurance system for BC
FAIR
AFFORDABLE
SUSTAINABLE
EFFICIENT
SIMPLE
EY
describe the INVERSE LIABILITY auto insurance coverage
coverage in jurisdiction where local laws DO NOT ALLOW CLAIMS against the person who caused the crash
