Facility Association close to break even pointBy Daniela Cambone | September 19 2004 08:09PM
The Facility Association, a vehicle insurer of last resort in provinces with non-government run insurance systems, is expecting a turnaround from last year’s $550 million loss.
Organization president, David Simpson anticipates that come October 31, the insurer will break even, or at least close to it. "It is a dramatic turnaround; the industry could not take another hit like they did last year," says Mr. Simpson. At press time, exact figures were not available.
Mr. Simpson explains that there are a few factors contributing to the positive results. "We are seeing our volumes decline, in terms of the number of cars insured in a number of jurisdictions. Most noteworthy would be Ontario and New Brunswick," he stresses.
"The legislative and regulatory reforms are also gaining traction to the benefit of everyone, especially for controlling costs for the consumer," he states.
Mr. Simpson adds, "Our loss last year was quite a bit more substantial than Hurricane Juan and the B.C. fires combined. So it is the biggest loss to hit the property and casualty industry since the Quebec ice storm."
Nunuvut, which was in the black last year, had a tough 2004. "As of April, the net results [for Nunavut] were at a loss of $113,000," says Mr. Simpson. However, he adds, "In those jurisdictions, the overall dollar volumes are small."