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Facility Association ìÆîÅ Çéïî» ÓÚ Ã¯è to update insurance Õð¶×Æ øËÇÃÇñàÆ rules, OTA says ÁËïÃƶôé
Facility Association – an øËÇÃÇñàÆ ÁËïÃƶôé - ܯ ÇÕ ÇÂ¾Õ ÁÇÜÔÅ ìÆîÅÕðåÅ ÔË Ü¯ insurer of last resort for À°é·» àð¾ÇÕ³× ÁçÅÇðÁ» çÅ trucking operations that ìÆîÅ Õðé ñÂÆ ÜÅÇäÁ» Ü»çÅ can’t secure coverage elseHigher-than-expected insurance claims within Facility ÔË ÇÜé·» ù Ô¯ð ÇÕå¶ ìÆîÅ éÔƺ where – has revamped its Association can create pressures that affect other ÇîñçÅ, é¶ ÁÅêäÆÁ» ð¶Çà³×à Áå¶ ratings and commercial insurance premiums. ÕîðôÆÁñ Á³âððÅÂÆÇà³× Çéïî» underwriting rules to betøËÇÃÇñàÆ ÁËïÃƶôé ÓÚ À°îÆç 寺 Ç÷ÁÅçÅ ìÆîÅ çÅÁò¶ ÁÇÜÔÅ çìÅÁ ù ðË×±ñð ìÆîÅ îÅðÕÆà ìðÅìð ter align with the regular êËçÅ Õð ÃÕç¶ Ôé ÇÜà éÅñ Ô¯ð ìÆîÅ êÌÆîÆÁî êÌíÅòå Ô¯ ÃÕç¶ ÔéÍ Õðé ñÂÆ Ã¯è ÕÆåÆ ÔËÍ insurance market. úºàÅðÆú àð¾ÇÕ³× ÁËïÃƶôé Most of the changes are to (ú.àÆ.¶.) é¶ Çê¾Û¶ ÇÜÔ¶ ÁËñÅé come into force Aug. 1, subÕÆåÅ ÔË ÇÕ Ç÷ÁÅçÅåð åìçÆñÆÁ» A Á×¾Ãå ù Áîñ ÓÚ ÁÅÀ°ä×ÆÁ», ject to regulatory approval, the Ontario Trucking Association ܶÕð ÇÂé·» ù ðË×±ñ¶àðÆ îé÷±ðÆ Çîñ Ü»çÆ ÔËÍ (OTA) announced recently. ÁËÃÃƶôé é¶ ÕîðôÆÁñ ðË÷Æâ±Áñ îÅðÕÆà dzô¯ð˺à çÆ ÃîÆÇÖÁÅ The association had joined with several industry insurers ñÂÆ À°çï¯× ç¶ ÕÂÆ ìÆîÅÕðåÅò» éÅñ B@AH ÓÚ Ô¾æ ÇîñÅÇÂÁÅ ÃÆÍ in 2018 to review what’s known as the Commercial Residual ÕÂÆ åÅ÷ÆÁ» åìçÆñÆÁ» ÓÚ ÁÇÜÔÆÁ» ÃñÅÔ» çÆ ÞñÕ ÇîñçÆ ÔË Ü¯ Market insurance. And many of the latest changes reflect ÇÕ îÂÆ B@AI ç½ðÅé ú.àÆ.¶., ìÆîÅÕðåÅò» Áå¶ øËÇÃÇñàÆ ÁËïÃƶôé recommendations that emerged during a May 2019 meeting between OTA, insurers, and Facility Association executives, ÕÅðÜÕÅðÆÁ» çÆ ìËáÕ ç½ðÅé ÃÅÔîä¶ ÁÅÂÆÁ»Í ÁÇÜÔÆÁ» ÕÅðòÅÂÆÁ» ìÅð¶ ÇÚ³åÅò» êÌ×à ÕÆåÆÁ» ×ÂÆÁ» Ãé the OTA adds. Concerns had been raised about operations that misrepre- ܯ ÇÕ ÁÅÃÅé ìÆîÅ êÌÆîÆÁî êÌÅêå Õðé ñÂÆ ÁÅêä¶ ÕÅð¯ìÅð» çÆ sent their businesses to secure favorable insurance premiums. öñå êÌåÆÇéè×Æ Õðç¶ ÔéÍ À°çÅÔðä òܯº ÇÂ¾Õ øñÆà ܯ ÇÕ ÁÅêäÅ Ç÷ÁÅçÅåð ÕÅð¯ìÅð úºàÅðÆú ÓÚ ÚñÅÀ°ºçÅ ÔË, À°Ã é¶ øËÇÃÇñàÆ ÁËïÃƶôé For example, a fleet that does most of its business in Ontario ù ÇÂÔ ç¾ÇÃÁÅ Ô¯ ÃÕçÅ ÔË ÇÕ À°Ô ÇéÀ± ìð³ÃÇòÕ ÓÚ ÁèÅðå ÔË, ÇÜ¾æ¶ ÇÕ might have told Facility Association that it’s based in New ؾà ÁÅòÅÜÅÂÆ Ô¯ä Õð Õ¶ Õ°¾Þ åð·» ç¶ ÔÅçÇÃÁ» (à¾Õð») çÅ õåðŠؾà Brunswick, where the exposure to lower traffic volumes might Ô°³çÅ ÔËÍ lead to a lower risk for some types of collisions. ܶÕð À°μÚ-÷¯Öî òÅñ¶ øñÆà À°îÆç 寺 Ç÷ÁÅçÅ çÅÁò¶ çÅÇÂð Õðç¶ If the high-risk fleets file more claims than expected, Ôé, å» ÇÂà çÆ ñÅ×å ìÅÕÆ ìÆîÅ À°çï¯× ò¾ñ¯º Ü÷ì ÕðéÆ ê˺çÆ ÔËÍ ÇÂà however, those costs have to be absorbed by the rest of the éÅñ Õ°ñ ÇîñÅ Õ¶ ìÆîÅ êÌÆîÆÁî» Óå¶ ÔÆ çìÅÁ ò¾èçÅ ÔËÍ insurance industry. That can introduce broader pressures on øËÇÃÇñàÆ ÁËïÃƶôé AIG@ ÓÚ ô°ð± Ô¯ÂÆ ÃÆ, Ü篺 ÃðÕÅð» é¶ ÁÅà¯î¯Çàò insurance premiums overall. Facility Association emerged in the 1970s, when govern- ìÆîÅ ù ñÅ÷îÆ ìäÅÀ°äÅ ô°ð± Õð Çç¾åÅ ÃÆÍ ÇÂÔ ÇìÌÇàô Õ¯ñ³ìÆÁÅ, î¶éÆà¯ìÅ Áå¶ ÃÃÕËÚòé 寺 ÇÂñÅòÅ ìÅÕÆ ÃÅð¶ ê̯Çò³ÇÃ÷ Áå¶ àËðÆà¯ðÆ÷ ÓÚ î½Ü±ç ments began mandating automotive insurance. It’s available in provinces and territories other than British Columbia, ÔËÍ Manitoba and Saskatchewan.
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MARCH 2020
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