p ersonal i njury p rotection p lan
DESCRIPTION
P ERSONAL I NJURY P ROTECTION P LAN. Don Palmer Chief Actuary and Director of Pricing & Economics. Where Manitoba Is. Winnipeg. Manitoba Public Insurance. Crown Corporation Established in 1971 Provides compulsory coverage as a monopoly - PowerPoint PPT PresentationTRANSCRIPT
PERSONAL INJURY PROTECTION PLAN
Don Palmer
Chief Actuary and Director of Pricing & Economics
Where Manitoba Is
Winnipeg
Manitoba Public Insurance
• Crown Corporation
• Established in 1971
• Provides compulsory coverage as a monopoly
• Provides optional coverage in competition with private sector
Our Mission Statement
• Protecting Manitobans from the human and economic cost of automobile accidents
Pre-PIPP Environment
• Prior to 1994 injury compensation was a tort add-on scheme
• Rapidly increasing injury costs
• High percentage of non-economic loss
• Under compensation of seriously injured
Ultimate Incurred Comparison Physical Damage vs. Injury
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
82 83 84 85 86 87 88 89 90 91 92 93 94
Insurance Year Ending
Physical Damage Injury
Incu
rred
($000)
Choices for Change
–Tort Reform
–Pure no-fault
PIPP Overview – Objectives
• Stabilize Injury Costs
• Compensate Manitobans adequately, fairly and promptly
PIPP Overview – Principles
• Coverage for all Manitobans
• Compensation for real economic loss
• Guaranteed compensation regardless of fault
• Indexation of Benefits
PIPP Overview – Benefits
• Income Replacement
• Medical Expenses
• Rehabilitation
• Impairment Benefits
• Death Benefits
Ultimate Incurred Comparison Physical Damage vs. Injury
-
25,000
50,000
75,000
100,000
125,000
150,000
175,000
200,000
225,000
250,000
275,000
300,000
82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
Insurance Year Ending
Physical Damage Injury
Incu
rred
($000)
Stabilizing Injury Costs
• Primary Insurer – almost
• Manitoba Health Services Commission and Canada Pension Plan still primary
• Maintain Case Management control
• Data to Monitor Cost Drivers
• Cost Trade-offs
• Covering the Cost of the many, not the few
PIPP Surprises
• Overall Satisfaction of the PublicCoverage Ratings
35
49
63
77
61
76
0
20
40
60
80
100
Takes good care of injured people Good insurance coverage fordamaged vehicles
Perc
ent P
ositi
ve R
atin
g
ARC
Product 2000
OMNI
PIPP Surprises
• Costs of Catastrophic injuries
• Number of losses have varied from 54 to 96
• Ultimate cost other varies from $29M to $65M
• Initially surprised reinsurers
PIPP Challenges
• Case management approach may lead to “data neglect”
• Increasing durations, especially “non-earners”
• Reserving challenges
• Impact of pre-existing conditions
• Accountability of practitioners
0
10
20
30
40
50
60
70
80
Per
cen
tag
e o
f T
ota
l Tre
atm
ents
Chiropractor A Chiropractor B Chiropractor C Chiropractor D
Distribution of the Number of Chiropractic Treatments By PractitionerInsurance Loss Year 1998
Less Than 20 20 to 35 35 to 100 More than 100
0
10
20
30
40
50
60
70
80
Per
cen
tag
e o
f T
ota
l Tre
atm
ents
Chiropractor A Chiropractor B Chiropractor C Chiropractor D
Distribution of the Number of Chiropractic Treatments By PractitionerInsurance Loss Year 1998
Less Than 20 20 to 35 35 to 100 More than 100
0
10
20
30
40
50
60
70
80
Per
cen
tag
e o
f T
ota
l Tre
atm
ents
Chiropractor A Chiropractor B Chiropractor C Chiropractor D
Distribution of the Number of Chiropractic Treatments By PractitionerInsurance Loss Year 1998
Less Than 20 20 to 35 35 to 100 More than 100
0
10
20
30
40
50
60
70
80
Per
cen
tag
e o
f T
ota
l Tre
atm
ents
Chiropractor A Chiropractor B Chiropractor C Chiropractor D
Distribution of the Number of Chiropractic Treatments By PractitionerInsurance Loss Year 1998
Less Than 20 20 to 35 35 to 100 More than 100
