How Facility Association managed trucking oversubscriptions

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Ontario’s 2023 changes making direct compensation for property damage coverage (DCPD) optional meant Facility Association (FA) “unwillingly [became] the underpriced market of choice for longhaul trucks carrying only liability and accident benefits,” […]

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[TRKINSURE]

Smh, I can only tell them so many times. They ought to have known (I told them many times) and worked quicker, but like all insurers, they’re too slow to react.

Hopefully this will be fixed soon and those with Facility will be in for sticker shock if they remain. It’s happening in Alberta but we’re too slow in Ontario.

 

[Jim L]

Wow, a 40% price increase is coming to those carriers renewing after July 1. This is going to knock out a large contingency of trucks that are using Facility insurance.

 

[Ins-Broker]

I was helping one get out of facility but he said he's fine with them and his broker, MANGO.
Some of these guys don't even know what they have gotten themselves into.

 

[Rob]

I was helping one get out of facility but he said he's fine with them and his broker, MANGO.
Some of these guys don't even know what they have gotten themselves into.

Most think they know more than folks that been at it 40-50 years. Insurance is not something to be played with IMHO but when running back to the homeland with a boatfull of cash is an option if things go sideways I guess some have a backup plan.

 

[TRKINSURE]

Wow, a 40% price increase is coming to those carriers renewing after July 1. This is going to knock out a large contingency of trucks that are using Facility insurance.

PS it’s 40% of their liability rate which is currently at $6,031/truck (without US exposure). I really think it’s a nominal amount and we need to push for a larger increase in this class of business.

 

[Jim L]

PS it’s 40% of their liability rate which is currently at $6,031/truck (without US exposure). I really think it’s a nominal amount and we need to push for a larger increase in this class of business.

That's $2,400 - at least it's going in the right direction. I'm not familiar with Canada only exposure but that number is not sustainable but neither is $8,400.00, IMHO. Liability risk in Canada, especially ON is getting a lot more exposure.