What’s New: In Brief (March 18, 2008)

The Insurance Corporation of British Columbia (ICBC) will be taking a phased-in approach to rate design changes targeting high-risk drivers, and delay the introduction of a second initiative targeting vehicles with multiple drivers (some of whom are high-risk).
ICBC in Spring 2007 announced plans to charge high-risk drivers higher premium rates than other drivers. But following customer input, the public auto insurer said it would take more time to clarify the factors that indicate higher risk for policyholders.
Phase 1 of the Driver Risk Premium will see drivers with criminal code convictions and one or more tickets for excessive speeding, as well as drivers with two or more roadside suspensions, pay more in 2009 based on their records as of Jan. 1, 2008.
Phase 2 will expand the program to include three or more motor vehicle-related offences over a three-year period, based on a driver’s record from January 2009.
Additional charges will go into effect in 2010, an ICBC statement says.
The additional charge for other higher-risk household members using a vehicle will not be implemented on May 1, as originally planned. ICBC is instead examining the best approach for moving forward, the company reports.

Lloyd’s has insured a leading European wine maker and taster’s nose for 5 million Euros (Cdn$7.79 million).
Working in tandem with Allianz Nederland and Benfield, Lloyd’s has created a bespoke policy that covers Ilja Gort for the loss of his sense of smell and his nose.
The Dutch owner of Chateau de la Garde in Bordeaux, and producer of Tulipe Wines, believes his nose is the most important asset in his profession. He adds a good sense of smell is essential to guarantee the constant quality of his wines.
Whereas the tongue has only five areas of taste, the nose can distinguish millions of different scents, Lloyd’s reports.
“This certainly is an insurance policy not to be sniffed at,” Jonathan Thomas, lead underwriter at Watkins Syndicate who co-insured the policy with Allianz Nederland, said. “The nose and sense of smell of a winemaker are as important as the fingers of a chef. We are delighted to have been able to create a bespoke policy that covers Mr. Gort and continues Lloyd’s reputation for covering specialist risks.”
Lloyd’s also insures the smile of America Ferrera, star of the television series Ugly Betty, for US$10 million.