Maintaining equity
THE PANEL OF EXPERTS MAKES PUBLIC ITS REPORT ON THE
AUTOMOBILE INSURANCE CONTRIBUTIONS PROPOSED BY THE SAAQ
Québec, December 9, 2011. – Today, the Panel of Experts on
automobile insurance contributions made public its report on
amendments to insurance contributions proposed by the Société de
l’assurance automobile du Québec (SAAQ). In its report submitted
to the SAAQ Board of Directors, the Panel of Experts delivers a
very simple message: after successfully taking on the problem of
financing the public automobile insurance plan over the last
several years, the SAAQ now needs to ensure that
equity is
maintained.
The Panel of Experts consists of three members who are
representative of the actuarial and insurance sectors, and these
experts must render an opinion on the amendments to automobile
insurance contributions proposed by the SAAQ for 2011 through
2015. These amendments were published in August 2011 in a
discussion document entitled
On the Right Path for a Sustainable
and Equitable Plan.
In its 54-page report, the Panel of Experts first indicated that
it fully concurred with the SAAQ’s three main objectives for the
coming years, that is: targeting full funding of the plan
without raising insurance contributions for the vast majority of
contributors; reviewing insurance contributions; and introducing
a review of the financial situation of the Fonds d’assurance
automobile du Québec every three years.
With respect to the amendments to insurance contributions, the
Panel of Experts emphasized the importance of respecting the
principle of equity. “For the Panel of Experts, equity is an
objective to strive for at all times,” said Mr. Michel
Sanschagrin, actuary and Chair of the Panel of Experts. “In the
context of insurance,” he explained, “equity requires each
category of contributors to pay the costs attributed to them.”
He added, “For the most part, the rates the SAAQ is proposing
follow that logic, with two exceptions.”
- First, the SAAQ proposes to recognize motorcyclists’ greater
vulnerability. Based on that recognition, the SAAQ proposes to
reduce the insurance contributions required of motorcyclists by
about six million dollars per year, an amount that must be
financed by all plan contributors. The Panel of Experts cannot
concur with this measure, which contravenes the fundamental
principle of equity.
- Second, the SAAQ proposes a cap at less than the real cost of
insurance contributions required for sport motorcycle
registration. This reduction of contributions must be financed
by all other motorcyclists. According to the Panel of Experts,
this type of cap constitutes an arbitrary limit that also
contravenes the principle of equity.
“These two measures make a breach in the principle of equity
that is the basis of the public automobile insurance plan,”
commented Mr. Sanschagrin. “Therefore, we are warning the SAAQ
against future consequences if such measures are adopted. With
this fundamental concern in mind, we are recommending
maintaining plan equity for all.”
In its
report, the Panel of Experts makes fourteen recommendations,
nine of which deal with insurance contributions for motorcycles.
One recommendation establishes the general principle of equity
on which insurance contributions must be based. The other
recommendations deal with insurance contributions for buses,
transparency on payment notices, sales tax on insurance
contributions and the recent funding policy adopted by the SAAQ.
The recommendations are listed in a separate press release.
The Panel of Experts is made up of Mr. Michel Sanschagrin,
actuary and Chair of the Panel, Ms. Louise Dagnault, chartered
accountant, and Mr. Henri Renault, lawyer. Eight submissions
were made and the Panel of Experts held public hearings in
October 2011. The mandate, approach and composition of the Panel
of Experts are explained in a separate press release.
The report is available on the Panel of Experts Web site (
www.conseilexpert.aauto.ca)
as well as on the SAAQ Web site (
www.saaq.gouv.qc.ca).
Paper copies of the report are available by contacting the
Direction des communications at the SAAQ.
Information
Jacques Carrière
Communications Coordinator
Conseil d’experts sur les contributions d’assurance automobile
Telephone: 418 643-1890; 1 855 622-4077 (toll free)
Email:
email@conseilexpert.aauto.ca