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F&I Reinsurance and Product Conference2019 Domicile Update

Adrian G. CorrOctober 29, 2019

Update on the current TCI, rules and regulatory environment and revisions under considerations

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CONTENT• Industry Statistics - Number of PORCs established 2015-2019

• Industry Statistics - Applications dealt with - January to July 2019

• Minutes of Meeting

• Suggested F & I Wording

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2015 2016 2017 2018

2019 As at 1st April 2018-

31st March 2019

Credit Life 5,704 6,391 6,404 6,725 6,967

Non-Credit Life 448 538 617 609 749

Total 6,152 6,929 7,021 7,334 7,710

NEW LICENSE ISSUED

Credit Life 799 729 689 541 545

Non-Credit Life 70 109 78 65 178

Total 869 838 767 606 723

• Note- “Credit Life"predominant licence

• Increase in New Licencesissued in 2019 compared to 2018.

• Overall increase in the totalnumber of PORC licence over the 5-year period

Industry Statistics *Number of PORCs 2015 to 2019

*Source- PORC Annual Industry Meeting- July 26, 2019

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Industry Statistics Applications dealt with: January to July 2019

Number of Applications received * 626

“Credit Life” 294

“Non-Credit Life” 39

TOTAL NEW PORC APPLICATIONS 333

Corporate Changes & Amendments 293

* Not counting full captives

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Suggested F & I Wording“Producer Affiliated Reinsurance Company” (PARC) means a licensed insurer who reinsures any policy of insurance securing the obligations of a debtor under a credit contract in the event of the debtor’s death, illness or injury, and includes such an insurer who provides finance and insurance cover, including:

• Credit Insurance, including Credit Life, Credit Accident & Health, Credit Property, Debt Cancellation, Guaranteed Asset Protection Insurance (GAP), Collateral Protection and Involuntary Unemployment;

• Extended Warranty Insurance, including Limited and Lifetime Warranty of any kind;

• Vehicle Service Contract (VSC) Insurance, including Extended Service Contract (ESC), Extended Service Contract-Supplement (ESC-S), Excessive Wear & Tear (“EW&T), Excessive Wear & Use (“EWU”);

• Collision Deductible;

• Finance Reserve;

• Functional use insurance, including Road Hazard, Tire & Wheel, Key & Windshield Replacement/Repair, Trip Interruption, Roadside Assistance, Travel Reimbursement, Etch/Theft Deterrent;

• Appearance Protection, including Dent, Ding, Paint & Fabric Repair, Window Tint; and

• Such other finance and insurance class or classes of business as may be approved by the Commission.

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THANK YOU

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