6INSURANCE CONTRIBUTIONS. Proposal for

Transcription

1 INSURANCE CONTRIBUTIONS Proposal for

2 1 6 8 INSURANCE CONTRIBUTIONS Proposal for

3 Direction des communications November 2014 Legal deposit 4th quarter 2014 Bibliothèque et Archives nationales du Québec ISBN (printed version) ISBN (PDF version) , Société de l assurance automobile du Québec

4 Insurance Contributions Proposal for Message from the Chair of the Board of Directors 5 Message from the President and Chief Executive Officer 7 INTRODUCTION 9 CHAPTER 1 The Automobile Insurance Plan for Quebecers 10 The Origins of the Plan 10 Its Guiding Principles 11 The Model s Strength 12 Its Financial Indicators 12 CHAPTER 2 Changes in the Financial Situation Since The Findings in 2004: A Disconcerting Financial Situation 13 The Financial Situation as of December 31, The Financial Situation as of December 31, Projections for Funding 16 CHAPTER 3 Insurance Contributions Insurance Contributions Passenger Vehicles 19 Driver s Licence (Class 5) 19 Vehicle Registration 19 Motorcycles 20 Driver s Licence (Class 6 only) 20 Driver s Licence (Classes 5 and 6) 21 Vehicle Registration 21 Other Vehicles 22 Vehicle Registration 22 CHAPTER 4 Striking a Fair Balance over the Long Term 23 CONCLUSION 27 APPENDICES 29Ta3

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6 MESSAGE from the Chair of the Board of Directors Over the last year, the analyses conducted by the Société de l assurance automobile du Québec Board of Directors and the decisions it has made have been based on the management principles that govern the Fonds d assurance automobile and build on the turnaround process that was initiated in The Board is of the opinion that the proposal presented in this discussion document will ensure the sustainability of the public automobile insurance plan. On behalf of the Board, I hereby submit the draft regulation respecting insurance contributions to the Panel of Experts on automobile insurance contributions and invite you to take part in the public consultations that will be held to discuss the issue. Your comments and suggestions will be examined carefully. Guy Morneau Chair of the Board of Directors 5

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8 MESSAGE from the President and Chief Executive Officer Thanks to an unprecedented collective effort, the Société de l assurance automobile du Québec (SAAQ) is proud to introduce the proposed insurance contributions for Nearly all motorists and vehicle owners will see reductions of up to 35% which represents annual savings in the order of $394 million thus driving home the notion that Être prudent, c est payant! [caution pays off!]. Remarkable progress has been made since 2004, when a significant turnaround process was required to ensure the plan s sustainability. The results have far exceeded our predictions thanks to an ever-improving road safety record, a review of our compensation practices, adjustments to insurance contributions and revenue derived from investments. In 2011, the initial results began to appear. Notwithstanding the annual indexation, insurance contribution rates have remained unchanged, and some contributors even saw reductions. This enabled us to continue eliminating the plan s accumulated deficit, which totalled $1.6 billion at the time. Since then, the financial situation has continued to improve. By December 31, 2013, the accumulated deficit had been completely eliminated, ten years earlier than expected. The plan even recorded an accumulated surplus of $658 million. The plan s financial strength has been completely reestablished, thereby ensuring that its commitment to traffic accident victims can be met on a long-term and sustainable basis. I invite you to learn about the insurance contributions proposed by the SAAQ for They will be subject to public consultations by the Panel of Experts, which will issue its recommendations in late spring Our work, however, does not stop there. It is essential that we continue our efforts to improve the road safety record. The SAAQ will continue to innovate and search for new incentives to encourage all road users to adopt safe behaviour. Nathalie Tremblay, FCPA, FCA President and Chief Executive Officer 7

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10 o roduction Financial management of the public automobile insurance plan is carried out with a long-term perspective 1 and is influenced by a combination of factors, the most significant of which are the road safety record and economic conditions. The plan must therefore be periodically reviewed to make sure it remains both stable and fair for traffic accident victims, as well as vehicle drivers and owners. In the 2011 review, the SAAQ set contribution levels until December 31, The purpose of this discussion document is to take stock of the plan s financial situation and propose the insurance contributions for This document provides an overview of the changes in the plan s financial situation since 2004, followed by a presentation of the proposed insurance contribution rates for and concludes with an overview of the work the SAAQ will undertake to go even further in its efforts to improve the road safety record. 1. The principles set forth in the Sustainable Development Act were taken into consideration in the insurance contribution review. 9

11 1 THE ORIGINS OF THE PLAN CHAPTER 1 The Automobile Insurance Plan for Quebecers The Automobile Insurance Act came into force on March 1, The government thereby put an end to the many deficiencies generated by the automobile insurance situation in Québec: The plan, based on fault, did not compensate all accident victims and was very expensive. Fault was difficult to establish. Claim settlement times were too long. Damages were poorly compensated. Compensation awarded by the courts did not guarantee that accident victims would enjoy a long-term standard of living that was comparable to their situation before the accident. In addition, 28% of traffic accident victims did not receive any compensation, because: they could not afford legal proceedings; the guilty driver was insolvent; or the amounts they were awarded only covered their legal fees.

12 INSURANCE CONTRIBUTIONS In 1977, 25% of drivers were uninsured. In today s numbers, this would represent 1.2 million people. The Société de l assurance automobile du Québec was given the mandate to manage the plan, the advantages of which have greatly outnumbered the disadvantages for over 35 years. As proof, it has often served as a model for other jurisdictions, such as Manitoba, Saskatchewan and Australia. ITS GUIDING PRINCIPLES The plan is: Simple: The only criterion to be eligible for compensation is to establish a connection between bodily injuries and a traffic accident. Universal: All Quebecers are eligible, regardless of fault, whether the accident occurred in Québec or elsewhere in the world. Efficient: The SAAQ immediately takes charge of accident victims and remains with them, if need be, throughout their entire life. Cost-effective: Contributions (the equivalent of premiums in private plans) are the lowest in Canada. The plan makes it possible, through indemnities, to compensate economic loss caused by an accident. Non-economic losses, such a diminished quality of life as a result of an accident, are also compensated. Moreover, the SAAQ takes the necessary measures to contribute to traffic accident victims rehabilitation to help them resume their daily activities and return to the labour market. Appendix A presents the main indemnities provided by the automobile insurance plan. 11

13 THE MODEL S STRENGTH The SAAQ s business model is unique. It encompasses prevention, control over access to the road network, control of the transportation of people and goods and compensation to traffic accident victims. This model allows Quebecers to benefit from a very advantageous public insurance plan. According to the Insurance Bureau of Canada, Québec already has the lowest average automobile insurance premium for passenger vehicles in the country 2. In addition, Québec has the lowest administrative cost per dollar of compensation paid compared to four other Canadian bodies (see Appendix B). ITS FINANCIAL INDICATORS The plan s financial situation can be assessed on the basis of two indicators: 1. The financing ratio The financing ratio indicates whether the annual revenue for a given year is sufficient to cover the costs for that same accident year. 2. The funding ratio The funding ratio indicates whether assets are sufficient to cover the indemnities to be paid out to traffic accident victims in the future, including management costs. 2. Source: Evolution of the Average Written Premium for Private Passenger Automobiles (all types of risk combined, excluding farmers, commercial automobiles and all terrain vehicles), prepared by Bernard Marchand, Government Affairs Advisor, IBC-Québec, Ref./No.: , October

14 2 CHAPTER 2 Changes in the Financial Situation Since 2004 THE FINDINGS IN 2004: A DISCONCERTING FINANCIAL SITUATION The road safety record had been deteriorating since 2000, with an alarming annual average of nearly 700 fatalities, 4,000 serious injuries and 44,000 minor injuries. The Service aux accidentés had long case processing times, which generated a high volume of complaints and longer disability periods. Although indemnities continued to be indexed to the cost of living every year, insurance contributions had remained unchanged for 20 years. The plan was under-financed, since revenue for a given year was insufficient to cover accident-related expenses for that same year. This annual under-financing of nearly $500 million resulted in a financing ratio of 59%. The plan was under-funded for the first time in its history. The funding ratio had fallen to 92%, which meant that for every dollar paid to accident victims, only 92 cents were available in the Fonds d assurance automobile. 13

15 If no structural actions had been taken, the Fonds would have dried up in 2018 and been faced with a commitment to pay $15 billion in indemnities to traffic accident victims. The plan s sustainability was threatened a turnaround was essential. In 2004, the government made a significant move: it created the Fonds d assurance automobile du Québec. With the creation of this fund, insurance contributions became a trust patrimony distinct from other government activities. In addition, the SAAQ was required to eliminate under-financing by the end of It was also required to eliminate any deficit within 15 years, and to submit any amendments to insurance contributions to an independent panel of experts for public consultations. The strategy that was adopted aimed to end under-financing and subsequently tackle under-funding by undertaking actions targeting three main areas: The road safety record, by bringing it back down to 2001 levels (2001 was the best year before 2004). The costs of the plan, by both controlling the increasing costs and improving the quality of service through a review of compensation practices so as to reduce processing times, modulate services to better adapt them to client needs, ensure better management of disability periods and, ultimately, help accident victims return to their pre-accident activities. Insurance contributions, by introducing gradual increases over a three-year period, with annual indexation, while making sure the contributions reflect a direct connection with the results of the road safety record. THE FINANCIAL SITUATION AS OF DECEMBER 31, 2010 Results of road safety record improvements and the compensation practices review began to emerge as of December 31, The Fonds d assurance automobile recorded a financing surplus of $207.1 million, as a result of which the financing ratio climbed to 122%. The under-financing problem was thus settled, well before the 2015 deadline set forth by law. However, the plan was still underfunded. In 2008, the Fonds d assurance posted an accumulated deficit of $2.7 billion, for a funding ratio of 69%, as a consequence of the financial crisis. 14

16 INSURANCE CONTRIBUTIONS The SAAQ was required to eliminate this deficit by 2023 at the latest. It was therefore decided to use the financing surplus to solve the under-funding problem. A portion of the insurance contribution paid by passenger vehicle owners and driver s licence holders was therefore assigned to recapitalization efforts in 2013, 2014 and This explains the drop in the financing ratio starting in THE FINANCIAL SITUATION AS OF DECEMBER 31, 2013 As of December 31, 2013, the Fonds d assurance automobile posted a $1.1 billion dollar surplus. This result, which exceeded expectations, allowed the $2.7 billion dollar accumulated deficit recorded in 2008 to be eliminated 10 years ahead of schedule and to secure an accumulated surplus of $658 million, for a funding ratio of 108%. Of these gains, $1.2 billion can be attributed to the road safety record, $1 billion to the review of compensation practices for the benefit of accident victims, and $1.2 billion to investment revenue. Changes in the Financial Situation from 2004 to FINANCING RATIO FUNDING RATIO % 60% 63% 68% 87% 104% 122% 139% 139% 131% 92% 95% 99% 97% 69% 72% 82% 89% 95% 108% 60, ,000,000

17 PROJECTIONS FOR Based on a road safety record that upholds 2013 performance levels and predictions from the Caisse de dépôt et placement du Québec, the SAAQ expects the financing and funding ratios to continue to improve, as illustrated below: Financing ratio 118% 118% Funding ratio 113% 118% FUNDING Since full funding has been achieved, the SAAQ must now determine the funding ratio to maintain in order to ensure the plan s long-term financial strength. The practice among public insurance companies is to target a funding ratio that exceeds 100% (see Appendix C). The SAAQ has therefore concluded that it would be appropriate to maintain a funding ratio between 100% and 120%. This means that a funding ratio below 100% could require an additional insurance contribution to recapitalize the plan, whereas a ratio above 120% could result in lower contributions for vehicle owners and drivers. 16

18 3 CHAPTER 3 Insurance Contributions The proposed insurance contributions for take into account the fact that the portion of contributions assigned to recapitalizing the plan will no longer be required as of 2016 for all classes of contributors, as a result of the plan being fully funded. They were determined as a result of an expert actuarial assessment and based on the same principles and conditions as the contributions set in 2006 and 2011, namely: Self-financing: rates determined in such a manner as to ensure full financing for each new accident year. Risk: The contribution level for each contributor category is determined on the basis of the risk of being involved in an accident with bodily injury. A call for caution by encouraging good behaviour. Stability: balancing stable insurance contributions with a financially strong Fonds d assurance. No discrimination on the basis of age, sex and region. Dividing the cost of an accident equally among the vehicles involved. An annual increase limit of 15%. 17

19 The insurance contributions also take into account variations in the frequency and severity of accidents in recent years. Although the frequency of accidents has dropped for all vehicle categories, some have seen an increase in the severity of accidents, which has generated an increase in the average cost of accidents that can be attributed to those categories and, in turn, increased contributions applied to vehicle registration fees. Furthermore, for motorcyclists, the SAAQ must take into account two new factors in the determination of contributions: 1. Since the road safety record of motorcycle driver s licence holders evolves differently than that of passenger vehicle driver s licence holders, a contribution specific to each class of contributors is proposed. 2. The appearance of new vehicles on our roads must also be considered in the determination of contributions. Electric motorcycles are a new reality to which the SAAQ must adjust. The current classification system for motorcycles includes four classes defined by cylinder capacity in cubic centimetres (cc) for gasolinepowered motors, whereas the power rating of an electric motorcycle is measured in kilowatts (kw). The SAAQ has therefore drafted an equivalency table on the basis of which it proposes to determine insurance contribution rates for electric motorcycles. kw (nominal) Over 35 kw Cylinder Capacity (cc) Over 400 cc 12 kw to 35 kw 126 cc to 400 cc 11 kw and under 125 cc or under 18

20 INSURANCE CONTRIBUTIONS INSURANCE CONTRIBUTIONS The proposed insurance contributions for 2016 are presented below. Unless indicated otherwise, contributions for 2017 and 2018 are indexed 2016 contributions. Passenger Vehicles Driver s Licence (Class 5) The insurance contribution for passenger vehicle driver s licence holders would be adjusted as follows: LICENCE Contribution ($) 2015 Contribution ($) 2016 Difference ($) Number of licence holders REGULAR AND PROBATIONARY With no demerit points ,192,100 1 to 3 demerit points ,800 4 to 6 demerit points ,300 7 to 9 demerit points , to14 demerit points , or more demerit points ,500 LEARNER DRIVER ,300 RESTRICED LICENCE* ,700 * Licence that only authorizes driving a vehicle equipped with an alcohol ignition interlock device. -$65 Vehicle Registration The insurance contribution for passenger vehicle owners would be adjusted as follows: Contribution ($) 2015 Contribution ($) 2016 Difference ($) Number of renewals ,818,700 19

21 Motorcycles Driver s Licence (Class 6 only) The insurance contribution for motorcycle driver s licence holders would be adjusted as follows: LICENCE Contribution ($) 2015 Contribution ($) 2016 Difference ($) Number of licence holders REGULAR AND PROBATIONARY With no demerit points to 3 demerit points to 6 demerit points to 9 demerit points Fewer than to 14 demerit points or more demerit points LEARNER DRIVER ,700 20

22 INSURANCE CONTRIBUTIONS Driver s Licence (Classes 5 and 6) The insurance contribution for holders of both a motorcycle driver s licence and a passenger vehicle driver s licence would be adjusted as follows: LICENCE Contribution ($) 2015 Contribution ($) 2016 Difference ($) Number of licence holders REGULAR AND PROBATIONARY With no demerit points ,600 1 to 3 demerit points ,900 4 to 6 demerit points ,600 7 to 9 demerit points , to 14 demerit points , or more demerit points , 100 Vehicle Registration A phenomenon has been noted in this vehicle category that reduces the effect of the improved road safety record on insurance contributions: 65% of motorcycle driver s licence holders do not own a motorcycle. Only 35% do. Every year, more and more of these drivers who do not own a motorcycle give up Class 6 (motorcycle) and are thus no longer required to pay the corresponding insurance contribution. This increases the financing portion to be covered by licence holders who do own a motorcycle. -$15 The insurance contribution for motorcycle owners would therefore be adjusted as follows: CATEGORY Contribution ($) 2015 Contribution ($) 2016 Difference ($) Number of renewals 125 cc and under (11 kw and under) 126 cc to 400 cc (12 kw to 35 kw) Over 400 cc (over 35 kw) , * , ,300 High-risk 1,006 1, ,600 Restricted-area use ,400 * For motorcycles with a cylinder capacity of 126 cc to 400 cc, the SAAQ applied the 15% increase limit. Therefore, a contribution of $329 would be collected in 2016 and an indexed contribution of $335 would be collected in

23 Other Vehicles Vehicle Registration Vehicle category Classification Contribution ($) 2015 Contribution ($) 2016 Difference ($) Number of renewals Bus City bus (ATUQ members) 1,589 1, ,000 School bus ,900 Other 10,000 kg and under ,700 Truck Restricted-area use Moped/motorized scooter Vehicle operated under a territorial licence Truck, other than government or government body truck Government or recognized government body truck; farm vehicle over 3,000 kg Other than a motorcycle Other than a passenger vehicle Over 10,000 kg * ,300 2 axles ,700 3 or 4 axles ,100 5 or more axles ,900 2 axles ,500 3 or 4 axles ,600 5 or more axles , , , ,100 Dealer plate ,500 Taxi ,100 Farm tractor ,300 Commercial vehicle (F plate) Other than a farm vehicle Farm vehicle 3,000 kg and under , ,330 * For other buses weighing more than 10,000 kg, the SAAQ applied the 15% increase limit. Therefore, a contribution of $763 would be collected in 2016, $877 in 2017 and $1,009 in

24 4 CHAPTER 4 Striking a Fair Balance over the Long Term The analysis conducted by the SAAQ in 2014, based among other things on trends in the insurance industry, both private and public, as well as the recommendations of the Panel of Experts in 2006 and 2011, have led it to confirm that the plan s management must strike a fair and long-term balance among the road safety record, services provided to accident victims and insurance contribution rates. PROVIDING SERVICES TO TRAFFIC ACCIDENT VICTIMS The SAAQ has always been committed to providing high-quality services to its clientele, with the goal of helping accident victims resume their pre-accident activities. It will thus continue to manage claims in accordance with the improvements that have been implemented since 2006 and to further develop the coverage provided by the plan. 23

25 CONTINUING 100 TO IMPROVE THE ROAD SAFETY RECORD 90 For over 35 years, 80 the government of Québec, the SAAQ and all road safety partners have acted upon three 70 levers to urge road users to adopt safe behaviour: raising awareness, legislation and monitoring. 60 From 2005 to 2013, 50all parties intensified their efforts through innovative awareness-raising campaigns, more severe 2004 legislative 2005 measures 2006and 2007 increased 2008 monitoring 2009on 2010 our roads As FINANCING a result of these RATIO actions, 59% Québec s 60% road safety 63% record 68% for % was the 104% best it 122% had been 139% in % % 68 years. 92% 95% 99% 97% 69% 72% 82% 89% 95% 108% FUNDING RATIO Road Safety Record ,000 50,000 40,000 30,000 20,000 10,000 0 DEATHS SERIOUS INJURIES MINOR INJURIES LICENCE HOLDERS VEHICLES IN OPERATION 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000, ,000 3,718 2,818 2,315 2,201 2,293 2,020 1,955 1,727 47,455 46,037 44,422 41,128 40,723 41,043 39,402 37,114 35,972 4,777,429 4,841,176 4,909,380 4,973,573 5,027,848 5,105,623 5,156,353 5,194,760 5,241,864 5,306,534 5,402,353 5,539,013 5,665,272 5,778,947 5,913,950 5,985,463 6,082,303 6,191,286 24

26 INSURANCE CONTRIBUTIONS There is no doubt that road safety has become a societal issue. Significant gains have been achieved. However, countries such as Sweden, Great Britain and the Netherlands post better performances than Québec (see Appendix D). Further efforts are therefore required to reduce the number and severity of accidents on our roads. Insurance Contributions: A Fourth Lever to Promote Road Safety With a view to using insurance contributions as a fourth lever, the SAAQ intends to move closer to industry practices in both the public and private sectors to determine insurance contributions. It will therefore focus its efforts on finding ways to further recognize good driver behaviour in the calculation of insurance contributions. The current demerit point system aims to penalize unsafe behaviour. The SAAQ requires offending drivers to pay an additional insurance contribution determined on the basis of the risk that corresponds to the number of demerit points entered in their driver s record. The SAAQ will therefore examine the possibility of reviewing the demerit point system in order to recognize good behaviour while continuing to penalize bad behaviour. In addition, property damage insurers take into account, among other things, a safety rating issued by the Commission des transports du Québec to set rates for heavy vehicle fleets. The SAAQ will therefore evaluate the possibility of considering this rating in the determination of insurance contributions for heavy vehicle owners and operators. Assessing the Potential of Telematic Technology The use of telematics is increasingly widespread in the insurance market across North America. By providing drivers with a periodic report on their driving habits, this new technology gives them the tools they need to target their at-risk behaviours and make the necessary adjustments to reduce the risk of accidents. The SAAQ also recognizes this technology s potential for road safety and has already taken preliminary steps to implement a pilot project, as of 2016, to test telematics with road users on a voluntary basis. The terms and conditions for this project will be known in This is another step forward toward meeting the SAAQ s goal of providing ways to reduce the frequency and severity of accidents. The results of this project will reveal whether the anticipated effect will have materialized. The SAAQ will subsequently determine the appropriate course of action. 25

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28 lu cnclusion The SAAQ has conducted a comprehensive examination of the financial situation of Québec s public automobile insurance plan, which is fully financed and funded. The course it has charted and the insurance contributions it proposes as a fourth lever to urge road users to adopt safe behaviour should lead to further improvements in the road safety record and ensure the plan s sustainability. The contributions are a source of financing that is directly related to the performance of the road safety record and intended to cover the costs of the automobile insurance policy for bodily injury for all Quebecers. The SAAQ believes that its proposal is fair and reasonable. It remains, however, open to a reworking of the proposal and new ideas. In that spirit, all interested members of the public are encouraged to take part in the public consultations that will soon be held by the Panel of Experts on automobile insurance contributions. 27

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30 APPENDICES A. Main Indemnities Provided by the Public Automobile Insurance Plan B. Administrative Cost per Compensation Dollar Paid Comparison with Comparable Canadian Bodies C. Funding Ratios Targeted by Public Insurance Plans for Bodily Injury D. Comparison of the Death Rate per 100,000 Inhabitants 29

31 APPENDIX A Main Indemnities Provided by the Public Automobile Insurance Plan Indemnities for Accidents that Occurred Between January 1, 2014 and December 31, 2014 Indemnities Income replacement indemnity (1) Indemnity for care expenses Lump-sum indemnity for students (2) Lump-sum indemnity for after-effects such as loss of enjoyment of life, mental suffering and pain Amounts 90% of net income, calculated on the basis of a gross annual income not exceeding $69,000 Weekly maximums: $414 for 1 person $464 for 2 people $513 for 3 people $564 for 4 or more people $4,957 per school year lost at the elementary level $9,096 per school year lost at the high school level $9,096 per term lost at the post-secondary level, up to $18,192 per year Maximum of $231,956 (1) When an accident victim who already receives an income replacement indemnity reaches the age of 65, the indemnity is reduced by 25% on that day, by 50% on the 66th birthday, by 75% on the 67th birthday and ceases being paid altogether on the 68th birthday. (2) Starting on the scheduled date of completion of studies, students may be entitled to receive an indemnity based on $41,810, which corresponds to the average earnings of Québec workers for the year in progress. 30

32 Types of expenses Care expenses Personal home assistance Availability allowance Clothing Contact lenses Eyeglasses Amounts Weekly maximums: $125 for 1 person $165 for 2 people $210 for 3 people $249 for 4 or more people A weekly maximum of $828 for an accident victim whose state of health requires continuous care $35 maximum for availability of 4 hours or less $70 maximum for availability of more than 4 hours $400 maximum for cleaning, repair or replacement $1,000 maximum for leather clothing or a helmet worn in a motorcycle accident $110 for replacement $300 maximum for purchase $100 for the frames and the actual cost of lenses INSURANCE CONTRIBUTIONS Medical reports $25 maximum for a Physician s Report (3) $25 maximum for an Initial Medical Report (4) $70 maximum for a Medical Assessment Report (4) $70 maximum for a Medical Progress Report (4) $65 maximum for a Medical After-Effects Report (4) Professional fees Substitute labour costs for a family business Medication Prostheses, orthoses, etc. $36 maximum per prescribed treatment for physiotherapy and occupational therapy $31 maximum per prescribed treatment for chiropractic care $26 maximum per prescribed treatment by acupuncture $86.60 maximum per prescribed treatment for psychotherapy For fees of other professionals, contact our call centre. Weekly maximum of $826 with supporting documents for the first 180 days after the accident To be determined on presentation of invoices or receipts To be determined on presentation of invoices or receipts, in accordance with the maximum amounts prescribed by regulation (3) The SAAQ stopped requesting the Physician s Report (Schedule 1) on May 20, (4) This report has been used by the SAAQ since May 20,

33 APPENDIX B Administrative Cost per Compensation Dollar Paid - Comparison with Comparable Canadian Bodies Year SAAQ Average of comparable bodies SAAQ ranking % 23% 1st/ % 24% 1st/ % 29% 1st/5 APPENDIX C Funding Ratios Targeted by Public Insurance Plans for Bodily Injury 1 Jurisdiction Targeted funding ratio Alberta Between 114% and 128% British Columbia Between 105% and 133% Manitoba Between 112% and 132% Newfoundland and Labrador Between 100% and 120% Northwest Territories Between 108% and 120% Prince Edward Island Between 120% and 130% Saskatchewan Between 138% and 153% Yukon Between 122% and 128% 1. Since the other Canadian public automobile insurance plans cover both bodily injury and property damage, the SAAQ used the public plans that cover workplace accidents as comparables. APPENDIX D Comparison of the Death Rate per 100,000 Inhabitants* Great Britain 2.8 Sweden 3.0 Netherlands 3.9 Québec 5.2 * Data from Note: The rate for Québec was 4.9 in

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