Marshall.Benefits

Question 1

Component benefits of ON’s manadatory auot insurance system

Answer 1

• no fault AB - provide benefits regardless of fault
• tort BI - allows you to sue the at-fault driver

Question 2

Fairness of Benefit

Answer 2

Benefit is fair

but benefits are deliveried unfairly

Question 3

Cause of unfairly delivery

Answer 3

• cost control at the expense of care
  
  • insurer emphasize cost control instead of care
  • but then victivms don’t recover and final costs are higher
• Lawyers
  
  • lawyers’ contingency fees are a % of settlement
  • lawyer seek higher settlement, not better care for victims
• Entitlement
  
  • victims seek to max entitlements vs addressing own care needs
• Volumns
  
  • providers are paid on volumn of treatment not results

Question 4

Solution Action Plan (5 steps)

Answer 4

1. structural flaws - fix structural flaws by appointing an arm-length regulator w/ powers to enact policies & pocedures
2. catastrophic injuries - change compensation system for catastrophic injuries bcaz lawyers are taking too big a chunk
3. care not cash - focus on timely, appropriate medical care, not cash payouts
4. lawyers - make contingency fees transparent and similify benefits so there is less need to hire lawyers
5. smart regulation - allow insurer more regulatory freedom to compete on price & service

Question 5

2 Gaps in ON Auto

Answer 5

• Opportunity gap: premium could be much lower w/o impacting quality
• Value gap: medical care could be better if there were more focus on active medical management

Question 6

BC vs ON Auto Insurance

Answer 6

Prodcut:

• similarity:
  
  • insurance is manadatory for both
  • both include tort & non-fault benefits
• difference:
  
  • ON - private system vs BC - public system
  • ON - stronger no-fault benefit vs BC - emphasized the tort system

Problem

• similarity:
  
  • severity is increasing for minor injuries in both
  • legal cost are too high in both
• difference:
  
  • ON - feq decreasing vs BC - freq increasing
  • ON - sev of all injuries increasing vs BC - sev of minor injuries increasing

Solution:

• similarites:
  
  • shift cash to care in both
  • reduce legal cost in both
• difference:
  
  • ON - freq is less issue vs BC - increase road safty to reduce freq
  • ON - reform focus on sturctural changes in regulatory system vs BC - reform focus on auto product redesign

Question 7

Public vs Private auto insurance system

Answer 7

Neither one is better than the other

• the goals of sustainability & affordability can be met by either with a properly designed product & regulatory system