A - Marshall

Question 1

MARSHALL

2 component benefits of Ontario’s mandatory auto insurance system

Answer 1

NO FAULT (AB) 
provide benefits regardless of fault

TORT (BI)
allows you to sue the at-fault driver

Question 2

MARSHALL

For ON auto insurance, benefits are fair but are not delivered fairly.

4 CAUSES of unfair delivery of auto insurance benefits in Ontario

Answer 2

COST CONTROL AT THE EXPENSE OF CARE

• insurers emphasize cost control instead of care
• but then victims do not recover and final costs are higher not lower

LAWYERS

• lawyers’ contingency fees are a percent of the settlement
• so lawyers seek higher settlements, not better care for victims

ENTITLEMENTS
-victims seek to maximize entitlements versus addressing own care needs

VOLUME
-providers are paid on volume of treatment not results

Question 3

MARSHALL

5 actions items in Ontario’s five-part ACTION PLAN for addressing the unfair delivery of benefits

Answer 3

STRUCTURAL FLAWS
fix structural flaws by appointing an arms-length regulator with a skills-based board with powers to enact policies and procedures

CAT INJURIES
change compensation system for cat injuries because lawyers are taking too big of a chunk

CARE NOT CASH APPROACH
focus on timely, appropriate medical care, not cash payouts

LAWYERS
make contingency fees transparent (and simplify benefits so there is less need to hire lawyers)

SMART REGULATION
allow insurers more regulatory freedom to compete on price and service

Question 4

MARSHALL

what is the opportunity gap in Ontario Auto Insurance

what is the value gap in ON Auto Insurance

Answer 4

opportunity for ON Auto Premium much higher than canadian avg. Could be much lower without impacting quality

the VALUE of medical care could be better if there were more focus on active medical care management

Question 5

MARSHALL

1 similarity and 1 difference in BC and ON auto products

1 similarity and 1 difference in PROBLEMS with BC and ON auto insurance

1 similarity and 1 difference in PROPOSED SOLUTIONS regarding BC and ON auto insurance

Answer 5

similarity
BOTH ARE MANDATORY

difference
BC : PUBLIC
ON : PRIVATE
-----
similarity
SEV is increasing for minor injuries in both provinces

difference
FREQ is increasing in BC
FREQ is decreasing in ON
-----
similarity
SHIFT FOCUS FROM CASH TO CARE

difference

• BC EMPHASIZES AUTO PRODUCT REDESIGN
• ON EMPHASIZED STRUCTURAL CHANGES IN REGULATORY SYSTEM

Question 6

BC v ON : which is the better auto insurance system : public or private

Answer 6

neihter

the goals of SUSTAINABILITY and AFFORDABILITY can be met by both with a properly designed product and regulatory system.