Newfoundland and Labrador Board of Commissioners of Public Utilities. Newfoundland and Labrador Automobile Insurance Expense Survey Instructions



Similar documents
Automobile Financial Information Main Collection

Newfoundland and Labrador Board of Commissioners of Public Utilities. Automobile Insurance Filing Guidelines

Newfoundland & Labrador BOARD OF COMMISSIONERS OF PUBLIC UTILITIES

Nevada Division of Insurance. Annual Reporting for Credit Life, Credit Accident & Health and Credit Involuntary Unemployment Insurance

Newfoundland & Labrador BOARD OF COMMISSIONERS OF PUBLIC UTILITIES

Educational Note. Premium Liabilities. Committee on Property and Casualty Insurance Financial Reporting. November 2014.

How To Calculate The Annual Rate Of Return On A Car In Alberta

FACILITY ASSOCIATION NOVA SCOTIA RISK SHARING POOL

This Regulation shall be known and may be cited as the Affordable Care Act Medical Loss Ratio Rebate Regulation.

ANNUAL REPORT BOARD OF COMMISSIONERS OF PUBLIC UTILITIES ON THE OPERATIONS CARRIED OUT UNDER THE AUTOMOBILE INSURANCE ACT

BOARD OF COMMISSIONERS OF PUBLIC UTILITIES

Absolute Liability- Liability regardless of fault.

SECTION III. Definitions have been included in these instructions to assist insurers with the preparation of their filings.

RE: Disclosure Requirements for Short Duration Insurance Contracts

ANNUAL RETURN: FORM 1 - FUND BALANCE SHEET

Auto Insurance in Ontario, Alberta, Nova Scotia, and Newfoundland & Labrador

SECTION III. Definitions have been included in these instructions to assist insurers with the preparation of their filings.

Government of Newfoundland and Labrador

Minnesota Workers' Compensation Assigned Risk Plan. Financial Statements Together with Independent Auditors' Report

INSTRUCTIONS FOR COMPLETING INSURANCE COMPANY FINANCIAL STATEMENTS

REPORT ON EXAMINATION OF THE MAKE TRANSPORTATION INSURANCE, INC., A RISK RETENTION GROUP AS OF

ANNUAL RETURN: FORM 1 - FUND BALANCE SHEET ZURICH INSURANCE COMPANY LTD (SINGAPORE BRANCH) 34,844,737 Land and buildings

Pension Funding Relief Enacted

STAFF REPORT ACTION REQUIRED

REGISTERING A CAPTIVE INSURANCE COMPANY IN BRITISH COLUMBIA. The purpose of this bulletin is to provide captive insurance applicants with:

ANNUAL INDUSTRY-WIDE ADJUSTMENT OF RATES FOR BASIC COVERAGE EFFECTIVE NOVEMBER 1, 2013 SECTION 4 OF THE AUTOMOBILE INSURANCE PREMIUMS REGULATION

ANNUAL RETURN: FORM 1 - FUND BALANCE SHEET

GUIDANCE NOTES for Insurance Business

UNIFUND ASSURANCE COMPANY Submission to the PUB Automobile Insurance Review Hearings

FUNDY MUTUAL INSURANCE COMPANY CONSOLIDATED FINANCIAL STATEMENTS

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

plan, hereinafter referred to as the Plan, means the statutory, COMMISSIONER OF INSURANCE 82-33

!! "#$% &'&& "(%)*"+!,! - $./ -0/ 1#$02$.3#4*5 6.#.5"070(.5$.% 6 $7#.91#$02 99:&: ""$7*0$**,99:&: -..#$"+??@/ - 0.%4$.#. $.%#$;0 /

Filings: An original hardcopy CARF and other required documents must be filed along with an electronic copy of the completed CARF.

BALANCE SHEET. 1. Form BA Balance sheet... 27

Australian Accounting Standards Board (AASB)

GG.00 Injured Workers Insurance Fund. ($ in Thousands) CY 2000 CY 2001 CY 2002 % Change Actual Budget Budget Change Prior Year

TITLE 114 LEGISLATIVE RULES INSURANCE COMMISSIONER SERIES 22 MEDICAL MALPRACTICE ANNUAL REPORTING REQUIREMENTS

2015 No. [INSURANCE] The Flood Reinsurance Scheme Funding and Administration Regulations 2015

Insurance Producer Standards of Conduct: Commissions and Fees. Authorized By: Holly C. Bakke, Commissioner, Department of Banking and Insurance.

Texas Private Passenger Auto Statistical Plan. General Reporting Instructions

Solution. The premium is simply the Loss Cost grossed up for expenses: $ $

Department of Consumer & Business Services Oregon Insurance Division Winter St. NE Salem, Oregon Phone (503)

FINANCIAL SERVICES COMMISSION OF ONTARIO

Dumfries Mutual Insurance Company Financial Statements For the year ended December 31, 2010

TITLE 16 DEPARTMENT OF REGULATORY AGENCIES CHAPTER 7 HAWAII MEDICAL MALPRACTICE UNDERWRITING PLAN

FASB issues enhanced disclosure guidance for insurer claim liabilities

Halwell Mutual Insurance Company Financial Statements For the year ended December 31, 2014

DEPARTMENT OF BANKING AND INSURANCE VERMONT REGULATION I-84-1 (REVISED) CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE

State of Rhode Island and Providence Plantations DEPARTMENT OF BUSINESS REGULATION Division of Insurance 1511 Pontiac Avenue Cranston, RI 02920

Alberta Automobile Insurance Rate Board

ARTICLE 20:06 INSURANCE. Chapter. 20:06:01 Administration. 20:06:02 Individual risk premium, Repealed. 20:06:03 Domestic stock insurers.

Insurance Regulatory Authority

REGISTRATION INFORMATION CHANGE PLEASE PRINT IN BLOCK LETTERS NAME AND ADDRESS OF COMPANY IF DIFFERENT FROM ABOVE. USE BLACK INK ONLY NAME OF COMPANY

HAMILTON TOWNSHIP MUTUAL INSURANCE COMPANY FINANCIAL STATEMENTS AS AT DECEMBER 31, 2015

January 21, 2015 Memorandum C. A. File all documents directly with the Insurance Division, Captive Insurance Branch.

FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM (FEHBP) ANNUAL REPORTING INSTRUCTIONS FOR EXPERIENCE-RATED CARRIERS

Massachusetts General Law Chapter 152, 25O and 53A. Classification of risks and premiums: distribution of premiums among employers.

Private Passenger Automobile Tort Reform Rate Reductions: Fact versus Fiction

Session 25 L, Introduction to General Insurance Ratemaking & Reserving: An Integrated Look. Moderator: W. Scott Lennox, FSA, FCAS, FCIA

Act means Intergovernmental Risk Management Act.

BULLETIN Presidents, Insurers Domiciled in California and Massachusetts that Write Workers' Compensation Business in Maryland

October 27, Dear Madame Secretary:

TITLE 18 INSURANCE DELAWARE ADMINISTRATIVE CODE Automobile Insurance. 603 Delaware Motorists Protection Act [Formerly Regulation 9]

Software Development and Computer Services

Texas Private Passenger Automobile Insurance Profitability, 1990 to A Report by the Center for Economic Justice. April 1999

SYNDICATE ACCOUNTING BYELAW

New Brunswick s Injury Regulation: Automobile Insurance Profits, Premiums, and Costs

Members Salary and Benefits

STATE OF CONNECTICUT

Reporting Guide Annual Retail Store Survey. Help Line:

This guide is designed to provide additional information for completing the questionnaire.

2012 Minnesota Homeowners Report

COLLECTION & PUBLICATION OF GENERAL INSURANCE STATISTICS AN OVERVIEW OF REGULATORY BEST PRACTICE. Win-Li Toh 20 November 2014

I-FILE Standardized Rate Indication Workbook Homeowners, Mobile Homeowners, Dwelling Fire

ARTICLE VII. RISK MANAGEMENT PROGRAM

Germania Mutual Insurance Company Financial Statements For the year ended December 31, 2014

MOTOR VEHICLE ACCIDENTS FUND

Guideline. Large Exposure Limits. Category: Prudential Limits and Restrictions. No: B-2 Date: August I. Introduction

Grants to Institutions

VALUATION OF LIFE INSURANCE POLICIES MODEL REGULATION (Including the Introduction and Use of New Select Mortality Factors)

BPT Return INSURANCE COMPANIES

Finansinspektionen s Regulatory Code

Ratemaking Methods in Insurance Operations Part 2. Factors to Consider When Developing Credible Premiums

Ohio Health Insurance Rate Filing Checklist

PUBLIC UTILITIES BOARD AUTOMOBILE INSURANCE REVIEW BACKGROUNDER

REPORT OF EXAMINATION OF THE WESTERN UNITED INSURANCE COMPANY AS OF DECEMBER 31, 2004

Software Development and Computer Services

Appendix C: HUD-1 Settlement Statement

Thank you very much for the opportunity to provide comments with respect to the Ontario Auto Insurance Five Year Review.

Part 5. Employment Expenses

PEEL MARYBOROUGH MUTUAL INSURANCE COMPANY FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2014

Presented to the. Board of Commissioners of Public Utilities MELOCHE MONNEX COMMENTS ON

CALIFORNIA EARTHQUAKE AUTHORITY. Financial Statements. December 31, 2001 and (With Independent Auditors Report Thereon)

INSURANCE DEPARTMENT OF THE STATE OF NEW YORK REGULATION NO. 147 (11 NYCRR 98) VALUATION OF LIFE INSURANCE RESERVES

Interim Capital Requirements for Mortgage Insurance Companies

Echelon Insurance Reports First Quarter Results. Net operating income of $0.17 per share compared to $0.30 in the first quarter of 2014.

INDEX 1. INTRODUCTION 3. RATE / PREMIUM 4. FREQUENCY / SEVERITY & NRP 5. NET PREMIUM METHOD 7. GLM

2010 Instructions for Schedule SB (Form 5500) Single-Employer Defined Benefit Plan Actuarial Information

How To Get Insurance For A Car

Transcription:

Newfoundland and Labrador Board of Commissioners of Public Utilities Newfoundland and Labrador Automobile Insurance Expense Survey Instructions

TABLE OF CONTENTS INTRODUCTION AND GENERAL INSTRUCTIONS... 1 Report on a Direct Basis... 2 SECTION 1: PREMIUM VARIABLE EXPENSES (VARIABLE)... 2 Direct Standard Commissions... 2 Direct Non-Standard Commissions... 2 Premium Taxes... 3 Direct Premium Written and Earned... 3 SECTION 2: EXPOSURE VARIABLE EXPENSES (FIXED)... 3 Operating Expenses... 4 General Expenses... 4 Number of Car-Years Written and Earned... 4 SECTION 3: HEALTH LEVY... 5 SECTION 4: NET PREMIUM FINANCE REVENUE... 5 SECTION 5: UNALLOCATED LOSS ADJUSTMENT EXPENSES... 5 Internal Loss Adjustment Expenses... 5 Direct Incurred Claims... 6 APPENDIX 1: REPORTING FORMAT... 6 APPENDIX 2: ADDITIONAL DOCUMENTS REQUIRED... 6 APPENDIX 4: SIGN-OFF FORM... 7 II

INTRODUCTION AND GENERAL INSTRUCTIONS The objective of the Newfoundland & Labrador Board of Commissioners of Public Utilities (the Board) annual Automobile Insurance Expense Survey (AIES) is to provide a clear estimate of individual company expenses, unallocated loss adjustment expense (ULAE) factors and other related information for automobile insurance written in Newfoundland and Labrador (NL). This information will be used by the Board in its review of automobile insurance rate filings. Pursuant to s.57 and s.58 of the Automobile Insurance Act and s.16 and s.62 of the Public Utilities Act, all companies writing automobile insurance in NL are required to participate and report the data identified in the survey form. Companies are to report AIES information to the Board on the same basis as they report expense information to OSFI (i.e. calendar year or fiscal year). Reports are to be filed in Excel format and must be submitted three months following year end date. Any company not able to meet this deadline must contact the Board to inform of the circumstances resulting in the delay and formally request an extension. This document provides detailed instructions related to the data elements required in the AIES. Companies may find that definitions provided in this document for certain survey data elements differ from those used by the companies when preparing rate filings. For the purposes of this survey, the Board requires that companies adhere to the definitions provided in this document to ensure that the AIES data is comparable and consistent across all companies. Please note however that it is not the Board s intention to influence how companies define these data elements for the purposes of their individual rate filings. To ensure data accuracy, the Board requires that a senior executive of the reporting company familiar with the data elements being reported sign off on the AIES data report using the sign-off form discussed in Appendix 4. Data reported to the Board is protected by the provisions of the Access to Information and Protection of Privacy Act (ATIPP). No company data will be released to any third party without the written consent of the respective company. However, the information filed may be used in an aggregated from and may not be subject ATIPP. The Board s reporting form is based on the voluntary IBC Automobile Expense Survey for ease of completion as insurers are familiar with that form. The Board s form however differs from the IBC form in that it requires somewhat more detailed information. Insurers should note the reporting of expense information to the Board is not a replacement or substitute for the IBC Automobile Expense Survey. Companies are strongly encouraged to continue participating this IBC s annual voluntary survey, or to commence doing so if not already. This will allow IBC can continue to provide industry aggregated data. These survey instructions, the survey form and all other applicable electronic documents can be downloaded from the Board website by following the Insurance link at www.pub.nl.ca 1

Report on a Direct Basis Throughout this survey, companies should report all data elements on a direct basis as defined herein. Direct means including amounts associated with risks ceded to reinsurance companies and excluding amounts associated with risks assumed. FA service carriers should exclude business written on behalf of FA from the AIES data provided for their company data report. SECTION 1: PREMIUM VARIABLE EXPENSES (VARIABLE) In this section companies are to report premium variable expenses for automobile insurance. Direct Standard Commissions, Direct Non-Standard Commissions and Premium Taxes are included in this section. To permit calculation of the expense-to-premium ratio, companies are to report direct earned premium and direct written premium in this section. These elements are to be reported on a direct basis as defined under Introduction and General Instructions: Report on Direct Basis. Direct Standard Commissions Direct Standard Commissions captures all standard commissions paid by the insurer for the sale of automobile insurance policies. Direct Standard Commissions should be reported on: i) a direct written basis to acquire the year s direct premium written and, ii) a direct earned basis matched to the direct earned premium for the year. This item must be broken down by vehicle type: Private Passenger Automobiles (PPA) and all other vehicle types (Other). Direct Non-Standard Commissions Direct Non-Standard Commissions captures all non-standard commissions such as contingent commissions. Direct Non-Standard Commissions paid and/or payable for the year should be reported. This item must be broken down by vehicle type: Private Passenger Automobiles (PPA) and all other vehicle types (Other). 2

Premium Taxes Premium Taxes captures the incurred premium tax. The incurred premium tax is to be reported on: i) a direct written basis to acquire the year s direct premium written and, ii) a direct earned basis matched to the year s direct earned premium. It is not necessary to break this item down by vehicle type. Direct Premium Written and Earned Direct Premium captures the total amount of premium written and earned by the reporting company for automobile insurance in the reporting year. This item must be broken down by vehicle type: Private Passenger Automobiles (PPA) and all other vehicle types (Other). Premium financing revenue should not be included in Direct Premium as this item is reported separately on the survey form. SECTION 2: EXPOSURE VARIABLE EXPENSES (FIXED) In this section companies are to report exposure variable expenses for automobile insurance. Exposure Variable Expenses include operating expenses and general expenses. To permit calculations of the expense-to-exposure ratio, companies are also to report number of car-years written and earned in this section. This item must be broken down by vehicle type: Private Passenger Automobiles (PPA) and all other vehicle types (Other). Companies having a specific allocation method in place to assign expenses by province for this item should use it to provide their NL breakdown. These companies are to provide an explanation of the allocation method used and to explicitly identify to the Board any changes in the method from one year to the next. Companies that do not have a method in place for allocating this item by province should use the default allocation method based on the number of car-years earned in NL. These data items are to be reported on a direct basis as defined under Introduction and General Instructions: Report on Direct Basis. 3

Operating Expenses Operating Expenses captures those expenses incurred in the daily automobile insurance operation. Included are expenses associated with agents, marketing, underwriting, actuarial services, client services and policy administration. Not included are expenses associated with claim handling, investment and general administration, as well as commissions, taxes, the provincial health levy and premium financing expenses. To illustrate, this data element includes, but is not limited to: 1. Salaries and employee benefits 2. Advertising 3. Inspections and investigations 4. Information technology 5. Management and professional fees 6. Out-of-pocket expenses, including those for travel, stationery and communications FA internal operating expenses that are charged by FA to the company must be excluded from this data element. General Expenses General Expenses capture those expenses necessary for general administration of the company such as expense related to head office, finance, human resources and legal. To illustrate, this data element includes, but is not limited to: 1. Head office overhead 2. Occupancy, including depreciations, rental, maintenance and insurance expense for office and furniture 3. Regulatory assessments and association expense 4. Directors remuneration 5. Donations 6. Bad debts Operating expenses, as defined in the previous item, investment related expenses and claims handling expenses must be excluded from this data element. Number of Car-Years Written and Earned Number of Car-Years Written and Earned captures the total number of vehicles insured during the reporting year; and in the case of earned exposures, weighted by the proportion of the year for which they were insured. This item must be broken down by vehicle type: Private Passenger Automobiles (PPA) and all other vehicle types (Other). 4

SECTION 3: HEALTH LEVY Health Levy captures the amount incurred during the reporting year by the reporting company to reimburse provincial governments for public health care costs resulting from automobile accidents. SECTION 4: NET PREMIUM FINANCE REVENUE As instructed in previous sections, premium financing revenue should be excluded from direct written and earned premium, and premium financing expense should be excluded from operating expenses. Net premium financing revenue, defined as premium financing revenue generated minus premium financing expense incurred to acquire the direct written and earned premium of the reporting year, should be reported separately in this section. SECTION 5: UNALLOCATED LOSS ADJUSTMENT EXPENSES In this section companies are to report the Unallocated Loss Adjustment Expenses (ULAE) for automobile insurance. ULAE captures internal loss adjustment expenses that cannot be allocated to individual claims. To permit calculation of the ULAE factors, companies are to report direct incurred claims in this section. It is not necessary to break these items down by vehicle type. These data items are to be reported on a direct basis as defined under Introduction and General Instructions: Report on Direct Basis. Internal Loss Adjustment Expenses Internal Loss Adjustment Expense captures the expense incurred for the operation of the claims department plus any internal expenses related to claims adjustment incurred in the legal department and other departments (client services, ombudsman services, etc.). Internal loss adjustment expense should be reported on a direct incurred basis. FA service carriers should exclude internal loss adjustment expenses for business written on behalf of FA. Companies having a specific allocation method in place to assign expenses by province for this item should use it to provide their NL breakdown. These companies are to provide an explanation of the allocation method used and to explicitly identify to the Board any changes in the method from one year to the next. The default allocation method is to allocate based on direct incurred claims in NL. 5

Direct Incurred Claims Direct Incurred Claims captures the total amount of paid claims and allocated loss adjustment expenses plus the change in unpaid claims and allocated loss adjustment expenses (case reserves plus IBNR) for the reporting year. Companies are to exclude internal loss adjustment expenses and the health levy from this item. APPENDIX 1: REPORTING FORMAT Companies are to report AIES information to the Board on the same basis as they report expense information to OSFI (i.e. calendar year or fiscal year). Reports are to be filed in Excel format and must be submitted three months following year end. Any company not able to meet this deadline must contact the Board to inform of the circumstances resulting in the delay and formally request an extension. Please name the Excel file using the format AIES-CompanyName-YYYY.xls and send the electronic file to ito@pub.nl.ca. (ex: AIES-XYZ Insurance-2010.xls) All data elements in the Excel file are defined in these instructions. Please do not change the column and row headers in the Excel file. All data (except car-years earned as described below) should be reported in thousands, rounded to the nearest integer and be formatted as a number without decimal point. For example, $12,345,678.90 should be reported as 12346. The number of car-years earned should be rounded to the nearest whole number and be formatted as a number without decimal point. For example, 1,234.66 should be reported as 1235. APPENDIX 2: ADDITIONAL DOCUMENTS REQUIRED For the purposes of data quality assurance, the Board requires the following additional documents from each reporting company: 1. An explanation of any method used to allocate expenses if other than the default methods as described in this instruction. 2. An explanation of any change in allocation methodology from the previous year s report. 3. An explanation of any other major changes in the reporting year that may have significant impacts on the consistency of the reported data over time. Examples include divestitures, mergers and acquisitions or other significant changes in operations or business in the province. 4. The sign-off form discussed in Appendix 4 signed by a designated officer of the company familiar with the data elements being reported. 6

APPENDIX 3: DATA QUALITY ASSURANCE PROCESS The Board will check all reported data against reference data available to the Board, with reasonable tolerance, as follows: 1. Direct written premium total against auto statistical plan data. 2. Direct earned premium total against auto statistical plan data. 3. Number of car-years written against auto statistical plan data. 4. Number of car-years earned against auto statistical plan data. 5. Premium taxes in relation to the provincial premium tax rate. 6. Operating expenses and general expenses against rate filing documents. 7. Health levy amounts in relation to earned premiums and/or earned car-years against published levy amounts and rates. This mandatory reporting of expense and other information does not replace the IBC voluntary reporting of similar information. Insurers are encouraged to provide the information reported herein to IBC on the IBC voluntary reporting form so that IBC can continue to provide industry aggregated data. APPENDIX 4: SIGN-OFF FORM To ensure data accuracy, the Board requires that a senior executive of the reporting company, familiar with the data elements being reported, sign off on the Automobile Insurance Expense Survey form using the sign-off form on the following page. An electronic copy of the form can be downloaded from the Board s website at www.pub.nl.ca/insurance.htm 7

Newfoundland and Labrador Board of Commissioners of Public Utilities Automobile Insurance Expense Survey Sign-Off Form Company Name: Reporting Basis: Calendar Year Fiscal Year Year Ended: I, (name), (position), certify that the Company s expense information provided in this report is accurate and reliable. I further certify that the Company s expense information provided in this report is based on the same allocation methods, where applicable, that were used in the Company s expense report to the Board last year. In case of any material changes to these allocation methods, I certify that the Company has provided the Board with detailed information on the changes and their impacts on the reported expense this year. I further certify that the company s expense information provided in this report is consistent with the expense information reported to OSFI and/or the Newfoundland and Labrador Superintendent of Insurance through the company s annual P & C Return. (Signature) (Date)