Customer Update – May 2019

i) IBC Changes

The General Insurance Statistical Agency (GISA) made changes to the Automobile Statistical Plan (ASP) (Bulletin No: GISA 2018-02),  effective on all premium and loss transactions reported with a Policy Effective date of July 1st, 2019 or later.

The changes were made to ensure that the business definitions of the automobile data collected are clearly understood, in order to ensure accurate reporting by insurers.

The mapping changes can be accommodated using the current ASP Premium and Claim record layouts and include removing reference to spouse in calculating number of other operators and revising the logic for Type of Business and Type of Use. An edit also created to confirm insurer is an approved company for Group Marketing (ON).

Changes impacted ASP edits and ASP anomaly rules within the GISA portal. It is the responsibility of each ASP reporting insurer to reflect these changes.  These changes did impact regul8 configuration, and as such, we have worked with our regul8 customers to successfully implement these new requirements.

Not a regul8 client? If you require any assistance, please feel free to contact us.

ii) Auto Industry Reform

The Canadian P&C insurance industry has been bracing for a hard market for some time. For Personal Lines, practically all Canadian insurers had 2018 personal lines combined ratios north of 100, with no relief in sight, as catastrophes (mainly from flooding) have continued into 2019.  Capacity has started to dry up as the large standard insurers are starting to cancel broker contracts and decrease their exposure in poor performing territories like Alberta and Ontario.

There is some relief on the horizon in Ontario, as the Government  is looking to implement Insurance reform which levels the current premium adequacy gap.  That said, insurers with non-modern core systems will take a hit on their expenses to implement the reform, as the changes being discussed are significant.

On January 9, 2019 the Ontario Government issued a news release announcing that it is seeking input on how to make auto insurance more affordable. Drivers and consumers were invited to share their views on how to lower the Province’s auto insurance rates, with a deadline of  February 15, 2019.

This consultation coincides with the review of Ontario’s auto insurance rate regulation system which is jointly conducted by the Ministry of Finance and the Financial Services Regulatory Authority of Ontario.

The Government budget of April 11, 2019, revealed some details of a new program “Putting Drivers First” (http://budget.ontario.ca/2019/chapter-1b.html#section-3)

The government proposed several changes, that include:

  • Use of credit histories to determine rates
  • Policy Discount mechanisms
  • A la carte-style insurance options to determine rates
  • Consumer access to more on-line services

We expect this reform to impose significant changes to core and broker facing systems.  Companies who are still on legacy core systems or in transition to modern systems might experience more complexity in executing these changes.  In addition, we expect regulatory changes to adapt in order to track the impact of the reforms, not to mention the possibility of other provinces following suit.

We are currently standing by for further details and ratification of these changes, which initially appear to be significant.  In time, our product team will be analyzing the impact on all our products and will be issuing bulletins to all our customers.

iii) Hubio Updates

Digital transformation is still the top priority for most of our customers.  The first-movers are wrestling with the side-effects of large transformation projects, like core system modernization and realizing ROI from their innovation and big data initiatives.  Cloud migration is being heavily discussed and considered by most insurers, but overall adoption is lagging the banking and life insurance industries.  This tends to counter many attempted agility gains.

The insurtech landscape is still gaining momentum with increasing VC activity.  Canada is seeing its fair share of startups with companies like FindBob, JAUNTIN’, Micruity, Liscena, Zensurance, ProNavigator and Ratehub.  Some of these startups are already partnered with many of our customers.

Hubio is also starting an incubator, which will be focused on insurtech plays that will provide value to our customers.

Since our last newsletter, many things have changed at Hubio. Here’s a few highlights…..

  • Our technical team has been re-organized, with Nicholas Yee, heading our Strategy and Product team. His team has a mandate to modernize our product portfolio and simplify our pricing/support model
  • We are currently putting the final touches on regul8 v10, which is scheduled for beta release in June and GA release in August 2019. This new generation of regul8 will be available in Cloud Software-as-a-Service (SaaS) and on-Premise deployment.   We are all very excited about this release and more details will be shared shortly.  Stay tuned…
  • Stephanie Romano will be transitioning to the role of Account Executive and will be the primary relationship manager for some of our customers.
  • As part of a renewed strategy of partnership with our customers, we will be launching some new initiatives to improve interaction and to collect better feedback from our customers. We’ll be sharing details with you shortly.