What’s new: In brief (June 01, 2004)

Rating errors could cost U.S. auto insurers as much as US$13 billion annually, says a report from QPC. In fact, in an audit of 12 million policies from 10 insurers over the past two years, QPC estimates the rating error at about 9.8% of premium on private passenger rates. Of, this 1.6% comes from errors in the commute/annual mileage portion of the rating, while 1.5% comes from errors in driver characteristics. About 1.4% of errors have to do with traffic violations/accidents.

The second phase of the World Trade Center insurance coverage trial has been delayed until October, reports National Underwriter. This phase involves nine insurers who are governed by the “Travelers” form which could be read to categorize the 9/11 attacks as two separate events, thus doubling the payout. The delay is the result of the Republican National Convention in New York this summer, which will absorb most of the Manhattan court’s security staff, NU reports.

Desjardins General Insurance Group has been awarded the 2004 OCTAS award for excellence for its national information technology project. The company as also awarded the OCTAS award for “business process transformation”. The award of excellence is the highest annual distinction given by the Federation de l’informatique du Quebec.