General Insurance Statistical
Agency (GISA)
Presentation to
Ontario Conference of Casualty
Actuaries
November 9, 2005
1. Background
• Regulators have authority under their respective insurance legislation
to appoint a statistical agent to collect information from all licensed
insurers.
• IBC has been designated as statistical agent for three statistical
plans:
–Automobile Statistical Plan (eight jurisdictions);
–Commercial Liability Statistical Plan (Ontario only); and the
–Ontario Statutory Accident Benefits Statistical Plan (Ontario only).
IBC collects data from insurers and compiles the exhibits for the
jurisdictions and recovers its costs via assessments to insurers and
deficiency fees charged
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2. Need for Action
• Recent auto insurance crises and reforms have increased the focus
on the ASP.
• Changes to ASP required to monitor impact of changes.
• In Atlantic provinces, Alberta and Ontario there have been
increasing questions on automobile insurance costs and in some
cases the reliability of data raised by various stakeholders.
• Increased scrutiny of the auto insurance system and the need for
quality data on a more timely basis to review costs and rates,
understand the issues and develop appropriate solutions.
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2. Need for Action – cont’d
•
•
Technological advances and increased access to data has
resulted in new and more sophisticated rating, classification and
underwriting techniques
From time to time, the ASP needs to be updated due to:
-
product or legislative changes
-
emerging issues or trends
-
changes in rating practices
-
technological or system changes
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3. Action Taken
•
Canadian Council of Insurance Regulators (CCIR) established a
working group in February, 2004.
•
Working group conducted a comprehensive review of the issues
and identified options.
•
CCIR accepted recommendation to establish an independent, nonprofit agency to act as the statistical agent.
•
Effective June 28, 2005, GISA is a federally incorporated not-forprofit agency and will be individually named the statistical agent by
each participating provincial and territorial government by their
respective regulator.
•
Each participating regulator is a member of GISA.
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4.
Governance
•
GISA is governed by a Board of Directors with the majority
membership comprising the regulators.
•
Board Of Directors is a tri-partite board, comprising regulators,
insurance industry representatives and public representatives.
•
Board has also established 3 committees:
• Executive Committee
• Finance & Audit Committee
• Technical Advisory Committee
•
Executive Committee:
Consisting of a Chair and 2 Vice-Chairs, provides oversight
and direction on the general operation of the agency and the
Secretariat.
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Governance Cont’d.
4.
•
Finance & Audit Committee:
Oversees, provides advice and makes recommendations to
the Board on:
•
•
•
•
External Audit;
Internal Control and Risk Management; and
Financial performance and planning.
Technical Advisory Committee:
Comprised of 10 members, provides advice and makes
recommendations to the Board on:
•
•
•
•
•
•
Possible changes to the Statistical Plan and associated exhibits
and reports;
Significant data requests;
System changes requested by members or by the service
provider;
Data quality issues; and
Emerging issues on the statistical plan.
Actuarial services.
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4. Governance Cont’d.
• GISA Secretariat
–
Provides support and consists of 2 staff: a Manager
and an Administrative Assistant
–
FSCO will provide supporting functions to the
Secretariat
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4. Governance Cont’d.
Member Regulators (8)
GISA Board of Directors
Executive Committee
Technical Advisory
Committee
GISA Secretariat
Service Contractor
(IBC)
Budget and Audit
Committee
Insurance
Companies
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5. Cost Recovery
•
GISA will be fully cost recoverable, non-profit
organization.
•
GISA will recover its expenditures by assessments
and deficiency fees collected by the IBC as service
provider.
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6. Service Contract with IBC
• A commercial contract will be made between GISA and
the IBC to provide statistical services.
• Draft contract developed by regulators and currently
under discussion.
• Discussions are being facilitated by a consultant.
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7. Outstanding Data Elements
• Regulators had requested additional data elements be collected to
keep the Stat Plan more current with industry classification plans
• These include: territory and use of FSA, expanding fields such as
year licensed, year claims free, value coding for deductible/liability
limits
• Benefits:
–
–
–
–
Actuarial support for class changes
Address data credibility concerns
Improve access to industry-wide data
Reduce time lag with quarterly report
• GISA needs to approve final data elements
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8. Technology Redesign
• Current system is dated and at capacity. 20 outstanding changes to
ASP as requested by regulators.
• IBC is proposing a major software and technology redesign to
support ASP and other IBC functions.
• IBC had original proposal reviewed by an external consulting firm
and had consultations with industry.
• IBC has revised its proposal based on the feedback.
• IBC to present redesign plan to GISA
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9. GISA Designated the Statistical Agent
January, 2006
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