The Ontario Broker - February 2018 - 9

RATE SETTING
TWO ONTARIO POLITICAL PARTIES HAVE
INDICATED THAT TERRITORIAL RATING
SHOULDN'T BE AN ACCEPTABLE VARIABLE
TO SET AUTO RATES. IS TERRITORIAL
RATING AN OBJECTIVE RATINGS VARIABLE
FOR YOU?

"A boutique experience,
with the strength of
a leading insurer"
Let me show you what sets us
apart from the industry, and how
a partnership with Pembridge
and Pafco may be the perfect
fit for your brokerage.

BT: Territory is a very predictive rating factor and one
we feel needs to be maintained. While we understand
the political concerns about rates in certain areas,
those rates are actuarially sound based on experience
and exposure.
However, with the transition from FSCO to FSRA
we believe there's an opportunity to modernize rate
regulation in Ontario. Insurance companies are
advancing techniques, and developing rating factors
and data sources to provide more accurate prices.
Pricing accuracy is an enabler for a company to sustain
competitiveness and grow profitably. In modernizing
rate regulation in Ontario, the regulator should weigh
how hyper-regulation designed to control rates has
actually had the adverse desired effect. It's driven rates
up with restrictions that hinder an insurers' ability to
innovate and compete. The shift to a flexible approach
to rating and product structure could enhance
consumer choice, potentially create more competition
and ultimately lower rates for consumers.

Contact me today!
BOB TISDALE | President & COO
905-475-4576

Trademark used under licence by Pembridge Insurance Company. © 2018 Pembridge Insurance Company.
Trademark used under licence by Pafco Insurance Company. © 2018 Pafco Insurance Company. DN181014

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Financing
the future of
Independent
Insurance
Brokerages.

HOW WE PERFORM ON A
CLAIM REFLECTS DIRECTLY
ON THE REPUTATION OF
OUR BROKER PARTNERS
WITH THEIR CLIENTS.
CJ: We use territorial rating to price more accurately
and fairly. Premiums in rural areas tend to be lower
than in urban areas due to the higher claims costs in
urban environments. Premiums should be determined
commensurate with claims costs. As we see it, the
government has three options:

At BMO Bank of Montreal, we're here to help your brokerage
succeed. Our comprehensive Insurance Broker Program has the
tools you need to achieve your goals.

1) Spread the costs of those territories across a larger
population so all drivers subsidize higher loss costs
through higher premiums;
2) Introduce new rating risk factors like credit; or
3) Reduce claims dollars spent by the people who live
in those territories so they can benefit from lower
premiums.

* Innovative cash management services

We believe the best solution is to reduce the claim costs
in those territories, and the solutions to those higher
premiums will be realized when the Government of
Ontario implements its Fair Auto Insurance Plan.

WWW.IBAO.ORG

* Brokerage specific financing solutions for succession planning, acquisition financing,
management buyouts and more1
* Tailored deposit solutions, such as BMO DepositEdgeTM cheque scanning technology
To learn how the BMO® Insurance Broker Program can help your bottom line, contact us at
1-877-629-6262 or by email at National.IndustryPrograms@bmo.com

1

Subject to meeting Bank of Montreal's usual credit granting criteria. TM/® Trademarks of Bank of Montreal.

9

FEBRUARY 2018


https://www.pembridge.com/ http://WWW.IBAO.ORG

Table of Contents for the Digital Edition of The Ontario Broker - February 2018

In this issue
The Ontario Broker - February 2018 - Cover1
The Ontario Broker - February 2018 - Cover2
The Ontario Broker - February 2018 - 3
The Ontario Broker - February 2018 - 4
The Ontario Broker - February 2018 - In this issue
The Ontario Broker - February 2018 - 6
The Ontario Broker - February 2018 - 7
The Ontario Broker - February 2018 - 8
The Ontario Broker - February 2018 - 9
The Ontario Broker - February 2018 - 10
The Ontario Broker - February 2018 - 11
The Ontario Broker - February 2018 - 12
The Ontario Broker - February 2018 - 13
The Ontario Broker - February 2018 - 14
The Ontario Broker - February 2018 - 15
The Ontario Broker - February 2018 - 16
The Ontario Broker - February 2018 - 17
The Ontario Broker - February 2018 - 18
The Ontario Broker - February 2018 - 19
The Ontario Broker - February 2018 - 20
The Ontario Broker - February 2018 - 21
The Ontario Broker - February 2018 - 22
The Ontario Broker - February 2018 - 23
The Ontario Broker - February 2018 - 24
The Ontario Broker - February 2018 - 25
The Ontario Broker - February 2018 - 26
The Ontario Broker - February 2018 - 27
The Ontario Broker - February 2018 - 28
The Ontario Broker - February 2018 - 29
The Ontario Broker - February 2018 - 30
The Ontario Broker - February 2018 - 31
The Ontario Broker - February 2018 - 32
The Ontario Broker - February 2018 - 33
The Ontario Broker - February 2018 - 34
The Ontario Broker - February 2018 - 35
The Ontario Broker - February 2018 - 36
The Ontario Broker - February 2018 - 37
The Ontario Broker - February 2018 - 38
The Ontario Broker - February 2018 - 39
The Ontario Broker - February 2018 - 40
The Ontario Broker - February 2018 - 41
The Ontario Broker - February 2018 - 42
The Ontario Broker - February 2018 - 43
The Ontario Broker - February 2018 - Cover4
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