Customers do not care to buy up on anything. They look at the bottom line. It's as important to them as buying life insurance every year. They are concerned about lawsuits and their liability limit. When you explain to them that they have the freedom of suing a third party for their injuries they are convinced that they will never be at fault. The general public also has the smarts to understand that if they cause an accident and at fault, they should not expect the sky.
We have a health care system that looks after all immediate medical costs as well as emergency major costs. We now have lawyers that are taking actions against innocent drivers despite the fact that their own clients are at fault.
Just look at Quebec. Who's complaining?? No-one. I have always said that if we take our policy, eliminate all the procedures to mitigate an AB loss, reduce the limits to where they were in 1989, no one would care except for those benefiting from the procedures and treatments. We have a bigger proplem to deal with very soon. It's called the NDP and their quest to control the product and cost. They really blew in in the last election. They could have gained many more seats with an auto insurance platform. They won't make the same mistake again soon. Remember it's a minority government and things are getting worst for the working stiff, not better. Imagine going to the public today with an amended policy as follows; Government looks after all treatments as they already do with some caps on some frills such as rehab,income replacement to be handled by WSIB, attendants care and housekeeping. They leave the insurers to now write Tort, physical damage and allow the private insurers to produce a non compulsary accident benefits endorsement to buy up any goodies. The New government will also mandate a transparent rating system for all drivers that insurers must follow.
The outcome = Insurers will sell Liability without change. Insurers will continue to sell DCPD, Collision and Comp.
No-one will bother to buy the enhanced AB endorsement because no-one cares as they don't care today. Current premiums will drop equivilant to the SAB premium charged on a policy per car. The government adds another $100 per year per driver on licence plate renewals. Savings about $700 per car per year and that's without any tort reform and a very concervative NDP government. We as brokers lose some income but retention will increase. Cost of doing business will drop because of transparent and simplified rating.
The problem: Insurers have their heads buried so far in the sand that they are not ready for any of this, and it will happen.