June 2, 2003 by Canadian Underwriter
The industry’s pool for high-risk drivers is expecting to post significant losses this fiscal year, particularly in Ontario. The Facility Association (FA) residual market stands to lose $313.9 million for the fiscal year, which runs from November 1, 2002 to October 31, 2003, according to “Outlook 2003” prepared by actuaries Eckler Partners.
About $275.8 million of this loss is in the Ontario market, with the Maritime provinces making up much of the remainder. Only Alberta is expected to help mitigate this to a slight degree, with almost $5 million in revenue anticipated.
In total, FA is predicting $762.3 million in written premiums and $618.3 million in earned premiums for 2003.
For the period November 2002 to March 2003, FA produced a loss of $102 million, with Ontario responsible for $86.6 million of this.
Last fiscal year, ending October 31, 2002, the FA residual market posted a loss of $101.0 million.
The full report, broken down by region, is available at www.facilityassociation.com.