- All private automobile insurers who write business in Canada must record and file automobile experience data.
- This is a requirement of the Automobile Statistical Plans prescribed by the Superintendents of Insurance.
- Information is used to provide industry-wide statistics.
- These statistics are used for analysis.
- This work is undertaken by the Insurance Bureau of Canada (IBC.)
- The cost is shared among the insurers,
- Except in provinces where basic automobile insurance is provided by the government.
- IBC (Insurance Bureau of Canada) compiles theinformation.
- The cost is at the insurer’s cost.
- In Quebec, the Groupment des assureurs performs this function.
- The results of the analysis are published annually in the Green Book.
- In Quebec, the results are published in the Grey Book.
- Exhibits show a 5 year history of the following:
o Private passenger automobiles
o Farmers’ private passenger automobiles
o Commercial automobiles
o Snow vehicles
o Inter-urban trucks
o Public classes
o Some miscellaneous classes
- Data is exhibited per policy year and accident year.
- Policy year
o All policies with policy-effective dates within the year are grouped together.
o All claims arising from these policies are taken into account, regardless of when they occur.
o Claims that are reported late are included so that premiums are matched with losses.
o Information gives the actuary a starting point from which to project future loss costs and to develop premiums.
- Accident Year
- o All losses in a given year, regardless of the
- policy years to which they are attributable, are grouped together.
o Loss costs demonstrated are the most recent indicators of what the future loss costs may be.
o Ex: if a policy is sold with an effective date of December 1, 2010 and a claim occurs in January 2011, the claim is reported as a 2011 claim for actuary purposes.
- Both policy year and an accident year must be distinguished from calendar year.