State of the Union 2020-21

TRKINSURE

Active Member
15
Hi again - sorry this has taken so long, most of my energy is now spent battling it out with insurers... As all of you likely know, our industry is in a dismal state - I'm going to give you a summary of my findings. if you are being offered a renewal by your current insurer (in particular Old Republic), take it and run! We have seen business being 'bought' by other insurers over the past 12 - 18 months and come renewals we seen premiums jacked up. Loyalty is starting to mean something in this industry again - so be weary of getting the 'best deal' only to find it it's going to put you further behind the following year.



Aviva – They are ramping up their space in trucking by hiring top talent from Northbridge & GCNA. I believe they are going to try and capitalize on the market downturn by hand picking 'best in class operations'. Beware though, Aviva has done this before and in a couple of years you could find yourself back on the streets. Aviva was the only trucking insurer to post positive results this last year (gross premium vs. total losses).

  • 5 Years in Business
  • CVOR under 35% (not conditional either)
  • Good Loss Ratio
  • Over 20 Power Units
  • Bit of a 'sleeper' market. But if you run a solid & compliant shop - ask your broker to approach them.
AIG – They have been less aggressive this year and again, picking their client base very carefully. We have seen some large increases as they try to fix their book with the current client base in order to make it profitable. They still retain top talent from an underwriting & claims experience.

  • 5 Years in Business
  • 30+ trucks
  • Unlimited US Exposure
  • Acceptable SMS/CVOR (not “Conditional”)
  • Currently an “Active” market
Blue Sky – This MGA is in correction mode as well. They are giving renewals extremely late due to a lot of things happening in the background and I've heard from a couple of companies who are getting pricing after the renewal!



We have heard there are some increases being given, in the neighbourhood of 30 - 40%. Having said that, they continue to retain accounts due to the extreme under-pricing of their product initially.

  • Currently a “Passive” market
Co-Operators – Co-Operators continues to write business but on a more selective basis. If you get told 'No' by a Co-Op agent, my recommendation is to call another one and keep trying until you have someone on the phone who is willing to provide a quote.



They are only doing local cartage & dump operations - no cross border. The market for dump trucks is virtually NIL. If you like flipping the coin to see whether or not you get a renewal each year then try these guys.

  • Currently an “Passive” market
CHUBB – If you are a fleet that can afford a $100,000 - $250,000 deductible this is the market for you. Their minimum requirement is at least 100 units, but realistically… if you can afford a deductible that large, you should have ownership in a captive not ‘renting’ insurance annually. Chances are if you are running a company like this you’re not scouring this forum for advice on insurance so screw you…..



Nothing has changed with Chubb, they remain a top choice for large national fleets.



Echelon – Recently Echelon had almost cleared out the underwriting dept at Intact Insurance. They took 3 underwriters who had all been there for 5 - 10 + years. Looks like they are ramping up to write a lot of trucking business this year. Unfortunately, they have teamed up with some unsavory brokers who will lie/steal & cheat in order to write business. From an ethical standpoint, I will not do business with this operation... but to each their own.

  • Currently an “Active” market
Economical – Still hot on the heels of them dumping almost their entire book of business and really fucking up the industry, Economical is selectively looking at trucking risks and when the operation fits into their box, they can be pretty aggressive. If you just crossing into the US bordering States then these guys could be the choice for you this year. Just don't be surprised if they turn around and dump their book of business again.

  • Currently an "active" market
  • No more than 30% US Exposure


Facility Association - The Largest Commercial Trucking Insurance writer of 2019. We have seen many well run operations end up here due to insurers flipping on insureds and no other insurer stepping up to help out. There are some unsavory brokers out there who again, lie/steal/cheat in order to secure business for their clients. These brokers are rating vehicles as 'local' operations and will rate 1 - 2 units for cross border to get the US Filings. If you have a COI with "Novex" or "Royal Sun & Alliance" and any broker in the Mississauga/Brampton area - I would second guess using them as likely the insurance isn't going to pay out. This has been such an issue that some top brokers/insurers in transportation have met with stakeholders across the province in order to re-underwrite & come down on those who are taking advantage of the system.



If you're a trucking company with Facility you should be seeing rates like;

Local Radius - $20,000 - $30,000/truck

Canada Wide - $40,000 - $60,000/truck

US Exposure (20%) - $60,000 - $80,000/truck

US Exposure (50+%) - $80,000 - $100,000/truck



If you are with Facility and paying substantially less than this, you are likely being rated incorrectly by the broker. Good luck with any claims.



The Guarantee (GCNA) – Recently SOLD TO INTACT INSURANCE.. Nobody at this point knows what's going on. Any new submissions are being redirected to Intact Insurance and GCNA will only get them if/when Intact declines (so they tell us). These guys are pretty much closed for business. An underwriter left GCNA to go to Aviva (see above). Likely alot of operations will hit the streets once Intact's rating system comes into play and again, will cause a lot of upset in the industry.

  • 5 years in business, 20 – 50 trucks (they will write as low as 15)
  • Currently an “Passive” market
Intact - Not much has changed with Intact, aside them purchasing GCNA. Their rates have gone up on average 20 - 35% for their current client base. If you're a single truck crossing border you're looking at a price of $28,000 - $35,000.

  • 1 – 100+ trucks
  • Business for at least 3 years
  • No US limits
  • Currently an “Active” market
Lynx – Haven't heard much from Lynx, aside them cleaning up their book and asking for large rate increases like everyone else. They are only writing in the 1 - 9 space currently and the operation needs to consist primarily of company power (they don't like O/O).

  • 1-9 trucks
  • Unlimited US exposure
  • Currently a “passive” market
Northbridge – These guys are steadily writing business, they were once considered as a 'premium' market from the price standpoint and now they are becoming much more in line with the rest of the market.

  • Currently an “Active” market


Old Republic – If there is one market whose been consistant to their underwriting approach it’s Old Republic. If you are currently with this market, stay where you are. They are approaching each account on its own merits when it comes to your renewal. They avg. 7 – 12% increase this year. Old Republic primarily writes trucking insurance in Canada so it is very likely that they will ever exit this space.



Recently Old Republic has taken a stronger stance on non-renewing under performing accounts. Know the score – check your loss ratio with your broker for 3 – 5 years so you understand whether you’re heading to Facility this year because of crash frequency/severity.

  • Currently an “Active” Market
Royal Sun & Alliance – in 2017-19 RSA entered into the trucking market for local operations and in 2019 has virtually shut down writing any operation with heavy vehicles. This market is closed for business.

  • Currently a “passive” market
Sovereign General – We haven’t heard much about Sovereign General over the past couple of years. They have gotten off risk on many unprofitable accounts, as all insurers have. They are not actively writing business and appear to be going through a difficult time when it comes to renewals as well.

  • Currently a “Passive” market
Travelers – Since my last writing, Travelers has shut down business for writing any trucking operations.

  • Currently a “passive” market


Wawanesa – They have actually ramped up their staff of underwriters and loss prevention personnel. We might see Wawanesa grow their book of business for those who run local operations and dump operations.

  • Currently an “Active” market
  • 160 KM radius (max).
  • No US Exposure
  • Will Write Dump Truck Operations
Zurich – Since my last writing nothing yet has emerged from Zurich.
 

lowmiler88

Site Supporter
30
The Facility Insurance Market has been updated so that poor performing or dishonest carriers can no longer omit certain info allowing them to get better rates. They will have to provide all the info that they would when they where turned down or priced out by the regular market. Basically all these companies that are located in Ontario but show insurance from another province (mostly AB) will now be out of business or paying the rates they should be which will probably drive them out of business.
 

Shakey

Site Supporter
20
The Facility Insurance Market has been updated so that poor performing or dishonest carriers can no longer omit certain info allowing them to get better rates. They will have to provide all the info that they would when they where turned down or priced out by the regular market. Basically all these companies that are located in Ontario but show insurance from another province (mostly AB) will now be out of business or paying the rates they should be which will probably drive them out of business.
how about the ones popping up in NB/NS is it same?
 

Jim L

Well-Known Member
20
The Facility Insurance Market has been updated so that poor performing or dishonest carriers can no longer omit certain info allowing them to get better rates. They will have to provide all the info that they would when they where turned down or priced out by the regular market. Basically all these companies that are located in Ontario but show insurance from another province (mostly AB) will now be out of business or paying the rates they should be which will probably drive them out of business.
That's great news. Any time they level the playing field the honest, legitimate and law abiding people can breath a sigh of relief knowing the hard work they put in is worth it.

The next step would be to disallow the fleet option for facility insurance- only have dated VIN specific vehicles insured. Too many of these guys request fleet pricing for 10 units but operate more than 10 units for the same price.

The whole commercial vehicle insurance industry would benefit from requesting the licensing bodies of the province (MTO, SAAQ etc) to demand a certificate of insurance with specific VIN before plate registration.
 

bellcitytransport

Active Member
15
The Facility Insurance Market has been updated so that poor performing or dishonest carriers can no longer omit certain info allowing them to get better rates. They will have to provide all the info that they would when they where turned down or priced out by the regular market. Basically all these companies that are located in Ontario but show insurance from another province (mostly AB) will now be out of business or paying the rates they should be which will probably drive them out of business.
Get with the times... it's moved from AB to NS.., thinking it has to do with AB increasing enforcement since the Humboldt incident. It's amazing the companies that have all of a sudden moved their operations to NS and plate their trucks there. Also, notice how each component of insurance is covered by a different Insurance provider as not to provide one Insurance company with all the facts. This with a dishonest insurance broker or one who isn't well informed, results in us ALL paying for it.
 

loaders

Site Supporter
30
I am curious. What is the situation for commercial truck insurance in Provinces where there is a government run plan, BC, SK, MB? Are their prices rising in lock step with private insurance policies? I would assume their must be some restrictions, or the pricing is not attractive, if not, there would be a mass exodus to those jurisdictions. Interested to hear from some carriers domiciled in those Provinces to get their take on it.
 

tasuinam

Member
5
I am curious. What is the situation for commercial truck insurance in Provinces where there is a government run plan, BC, SK, MB? Are their prices rising in lock step with private insurance policies? I would assume their must be some restrictions, or the pricing is not attractive, if not, there would be a mass exodus to those jurisdictions. Interested to hear from some carriers domiciled in those Provinces to get their take on it.
We are in MB and the pricing is based on what your safety record and the price of your equipment is (I think) - we have been inspected twice by MPI (Manitoba Public Insurance) once when we started operations and last year when we requested an increase in our fleet size. Essentially you get rewarded for running a safe and well maintained operation - but if you are new the premiums are high till you have a history with MPI.
We have to submit where we travel and how many miles (an unofficial IFTA) so they can determine lanes we service. I believe they are higher priced than some private insurance - but if you are based here then you deal with it. We also have to submit VIN for the equipment being insured.
 

lowmiler88

Site Supporter
30
Here is the release from the OTA, I know I know some people hate the OTA, I'm a board member and cannot understand why everyone is not a member, great info.

Level-Playing Field Addressed in Facility Insurance Market

(TORONTO, Oct. 5, 2020) -- The Facility Association (FA) revamped their rating and commercial underwriting rules to improve alignment with the regular insurance market.

The Facility Association administers automobile insurance residual market on behalf on the insurance industry in nine provincial jurisdictions, except B.C., Manitoba and Saskatchewan.

The changes ensure that FA underwriters are supplied with the information they need to ensure a commercial policy is rated correctly. For example, additional information FA now will request includes fuel tax reports, NSC profile information; and FMCSA SMS reports. This information helps determine where vehicles are operating, routes travelled and the frequency of travel, which will assist in reducing underreporting of out-of-province and U.S. exposure.

The rules referenced above are in place as of October 1, 2020, except in New Brunswick and PEI, which will come online January 1, 2021.

In late 2018 and throughout 2019, Facility Association identified a significant increase in interurban (trucking) business. Increases in trucking business was observed in multiple locations across the country.

Following feedback from the Ontario Trucking Association and member insurance companies, Facility Association formed a “commercial lines working group” composed of large interurban and commercial vehicle writer, with representation from Intact Insurance, Northbridge Insurance Company, Economical Mutual Insurance and the Cooperators General Insurance Company, as well as representatives from Dalton Timmis Insurance Brokers and the Ontario Trucking Association.

“We are grateful for the work undertaken by FA and insurance industry partners to address the level-playing field issues identified over the past few years. We are now able to move forward with a system that treats everyone the same with respect to their risk and the premiums required to cover that risk,” said Stephen Laskowski, president of the OTA and the Canadian Trucking Alliance.

The working group’s mandate was to conduct a comprehensive review of Facility Associations’ commercial-interurban underwriting rules and propose amendments. Enhanced underwriting rules would equip FA to obtain all necessary underwriting and rating information in a fair and equitable manner and would align with standard market writers. In other words, fleet operators and trucking firms should be restricted from obtaining a lower premium on their insurance in FA because FA has no authority to force the disclosure of the relevant information; nor should public safety be put at risk as a trade-off to market access.

When applied for and issued properly, insurance with the FA has a legitimate and important role in supporting the trucking industry. The intent of the review was not to eliminate these legitimate uses, but rather to assess the residual market insurance policy framework and ensure proper rating of carriers reflects road safety and fleet responsibility in this market.

With modernized Facility Association underwriting rules in place to deter fraud and misrepresentation, industry and governments can now focus their efforts on systems to ensure government licensing systems check insurance coverage in real-time and that sufficient regulatory financial commitment levels are being met.
 

PackRat

Site Supporter
20
Hi all,

Can anyone advise what their E+O policy is costing them per year? Any Insurance Brokers under the "referred" list?
Thanks.
PR
 

TRKINSURE

Active Member
15
Hi all,

Can anyone advise what their E+O policy is costing them per year? Any Insurance Brokers under the "referred" list?
Thanks.
PR
Min premiums are now $3,000. Rates are adjusted around .001 to .0025 depending on revenue (multiply your revenue X those decimals to figure out total premium). That is the cost for the Contigent Cargo, E&E and Cargo Legal Liability.
Why don’t you send me a PM and I’ll give you my number. Probably easier to problem solve over the phone.
 

Michael Ludwig

Well-Known Member
20
Get with the times... it's moved from AB to NS.., thinking it has to do with AB increasing enforcement since the Humboldt incident. It's amazing the companies that have all of a sudden moved their operations to NS and plate their trucks there. Also, notice how each component of insurance is covered by a different Insurance provider as not to provide one Insurance company with all the facts. This with a dishonest insurance broker or one who isn't well informed, results in us ALL paying for it.
Typically the problem is caused by Ontario based carriers that have a safety record that is Chernobyl-ized and dishonest insurance brokers. What they do is rent office space in NS, NB, or PE and claim that as their base of operations. Then they tell some massive lies ...
1) They only have 10 trucks when they really have 100.
2) They only operate in the maritimes.
3a) They never go to the U.S.
3b) They only go into the top end of Maine.
4) All 10 of their drivers have had years of experience, and NONE of them have ever had an accident.
5) Total fleet mileage is about 200,000 miles.

Facility then gives them insurance for around $4,000.00 per truck ... or $40,000.00 for a "Ten" truck fleet. Throw in a good photocopier and there you have insurance for a 100+ truck fleet for $40 Grand.

These are the same people that run their businesses with burner cell phones and stolen fuel card numbers. When the shit hits the fan of course they don't have any insurance coverage, but that doesn't matter to them anyways ... they're already on a plane headed to back the old country ... cash in hand.

The BIG question is ... are the rest of us stupid because we didn't we didn't take advantage of the broken Facility system ???

(BTW ... the 10 for 100 is actually a true story !!!)
 

TRKINSURE

Active Member
15
Hes
Typically the problem is caused by Ontario based carriers that have a safety record that is Chernobyl-ized and dishonest insurance brokers. What they do is rent office space in NS, NB, or PE and claim that as their base of operations. Then they tell some massive lies ...
1) They only have 10 trucks when they really have 100.
2) They only operate in the maritimes.
3a) They never go to the U.S.
3b) They only go into the top end of Maine.
4) All 10 of their drivers have had years of experience, and NONE of them have ever had an accident.
5) Total fleet mileage is about 200,000 miles.

Facility then gives them insurance for around $4,000.00 per truck ... or $40,000.00 for a "Ten" truck fleet. Throw in a good photocopier and there you have insurance for a 100+ truck fleet for $40 Grand.

These are the same people that run their businesses with burner cell phones and stolen fuel card numbers. When the shit hits the fan of course they don't have any insurance coverage, but that doesn't matter to them anyways ... they're already on a plane headed to back the old country ... cash in hand.

The BIG question is ... are the rest of us stupid because we didn't we didn't take advantage of the broken Facility system ???

(BTW ... the 10 for 100 is actually a true story !!!)
He's unfortunately bang on. We hear about this all the time in our business. The same known culprits and yes, Michaels story about the 10 trucks happens more often than its told.
Facility has tightened the rules which is good but only a matter of time before a new scheme has hatched. Us brokers have known these people have been doing this for over 2 years and blown the whistle but it’d always seemed as though it was fallen upon deaf ears. Finally things seem to be turning around.... until the next scheme.
they ought to throw these ppl in jail.
 

Michael Ludwig

Well-Known Member
20
they ought to throw these ppl in jail.
Absolutely correct, but it's "white-collar" crime, and police forces willing to investigate them are few and far between. For those forces that will investigate white collar crime, their investigation units are woefully undermanned. Then, even if they do manage to lay charges, get the criminals to court, and successfully prosecute, the punishment is typically just a fine, or a fine plus minimal probation. There really is no deterrent to white collar crime in this country, or any other country for that matter.
 
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