One broker wrote to
Insurance Business that it is ironic underwriting is so strict, while driver testing still allows for a driver to go untested for decades and decades.
“Silver Bullet? What about the common sense approach?” asked one reader, Mike. “The problem is that licensed drivers are tested once in a lifetime, never tested again until age 80. Plus - why would insurers allow a government organization (MTO) to license drivers? Insurers are so anal about underwriting everything they do yet allow an outside government organization to test drivers once in a lifetime.”
The article, ‘
The silver bullet for Ontario auto insurance,’ had the President and Chief Operating Officer at Echelon Insurance offer his opinions on what could be done to help cure that province’s ailing auto insurance system.
“You can reduce costs for insurers by streamlining the filing process, and develop a clear and sustainable definition of catastrophic impairment,” Echelon's George Kalopsis told
Insurance Business. “There is no one silver bullet. They are all important, but unfortunately, we’re missing some of those bullets in our gun right now.”
For Mike, a potential solution to remove at-risk drivers could include insurance industry-sponsored testing.
“Voluntary testing paid for by the insurers,” wrote Mike. “Including skid courses, dangerous driving courses. Make them voluntary; if the driver passes or even proves they took the course, then allow a discount for their renewal off a base rate. The courses could also cover off fraud; teach people about basic insurance.
“Currently the licensing system is a joke!”
Did you miss the second part of the George Kalopsis interview? Click
here to see what province Kalopsis feels is doing it right.
