January 18, Private Passenger Automobile Closed Claim Study Newfoundland and Labrador

Transcription

1 January 18, 2005 Private Passenger Automobile Closed Claim Study Newfoundland and Labrador

2 Private Passenger Automobile - Excluding Farmers Closed Claim Survey Newfoundland and Labrador Contents 1. Introduction Selected Findings Exhibits- Description...5 Appendix-Exhibits 1 to 5 Attachments- List of Insurers, Survey Form and Instructions Mercer Oliver Wyman i c:\documents and settings\pelliott\my documents\my working papers\nfld-closed claim survey update\ppv-report-update.doc

3 Private Passenger Automobile - Excluding Farmers Closed Claim Survey Newfoundland and Labrador 1 Introduction The closed claim study was conducted under the direction of the Newfoundland and Labrador Board of Commissioners of Public Utilities (the Board). The Board retained Mercer Oliver Wyman Actuarial Consulting Limited (Mercer); Bern Fitzpatrick, an insurance consultant; Dr. Susan Rideout-Vivian, a medical consultant; and NKHK Chartered Accountants, to assist in the study. Process Initially, each of the participating insurance companies provided Mercer with a list of all bodily injury claims that were closed during the three year period spanning July 1, 2001 through June 30, A list of the participating insurers is included in the attachments. The selection of insurers was based on a number of considerations: market share and therefore reasonable representation of the private passenger automobile marketplace in Newfoundland and Labrador, availability of resources, and logistics of keeping the number of participating insurers to a manageable size with respect to training and communication. From this initial listing, a random sample was created for each participating insurer, proportional to its initial listing. The range of settlement sizes in the random sample was reviewed for general consistency to the initial listing. Insurers were instructed to provide the detailed survey information for each claimant in the random sample. Mercer Oliver Wyman 1 c:\documents and settings\pelliott\my documents\my working papers\nfld-closed claim survey update\ppv-report-update.doc

4 Private Passenger Automobile - Excluding Farmers Closed Claim Survey Newfoundland and Labrador Each company was provided with instructions regarding the detailed information that was to be collected from each claimant file, and on-going assistance as required. The data was captured in excel format and electronically provided to the Board. The claimant survey data was initially reviewed for accuracy and compliance by the insurance consultant, followed by a review of a sub-sample of files by the accounting firm. While many of the data elements collected were not deemed to be critical, others such as the month and year of the accident, injury type and allocation of settlement amount to category of damage (e.g., general damages, special damages etc.) were deemed to be critical. Subsequent to these reviews, the claimant data was forwarded to Mercer. As a result of the reviews and corrections, 1369 claimant records were included in the final closed claim study database. The total settlement amount for these 1369 claimants is $33.7 million, including allocated loss adjustment expenses. Mercer Oliver Wyman 2 c:\documents and settings\pelliott\my documents\my working papers\nfld-closed claim survey update\ppv-report-update.doc

5 Private Passenger Automobile - Excluding Farmers Closed Claim Survey Newfoundland and Labrador 2 Selected Findings The following are a few of the highlights of the closed claim survey data. In the following, settlement amounts include all components of the settlement amount paid out, but exclude the allocated loss adjustment expenses: 65% of the claimants were involved in accidents with vehicles insured in Statistical Territory 004, St. John s 82% of the claimants had the seat belt engaged at the time of the accident Only 9% of the claimants were involved in an accident with one vehicle The number of claimants to claims ratio was 1,369 to 985; or 1.39 to 1 41% of the claimants had regular full time employment, and received 49% of the settlements 61% of the claimants were represented by legal counsel, and received 89% of the settlements less than 1% of the claimants settled through court trial, and received 2.5% of the settlements 1% of the claimants had some element of a structured settlement, and received 6% of the settlements 96% of the claimants received some award for pain and suffering awards Of the total claim payments (all loss payments, but excluding loss adjustment expense) of $30.8 million, $18.6 million or 60.4% were for pain and suffering Mercer Oliver Wyman 3 c:\documents and settings\pelliott\my documents\my working papers\nfld-closed claim survey update\ppv-report-update.doc

6 Private Passenger Automobile - Excluding Farmers Closed Claim Survey Newfoundland and Labrador 34% of the claimants received pain and suffering awards over $15,000; and received 70% of the pain and suffering settlements 64% of the claimants received pain and suffering awards up to $15,000; and received 30% of the pain and suffering settlements 83% of the claimants received pain and suffering awards over $2,500; and received 98% of the pain and suffering settlements 17% of the claimants received pain and suffering awards up to $2,500; and received 2% of the pain and suffering settlements 74% of the claimants had at least one injury described as a strain or sprain of the neck, back or other area, or a knee or shoulder injury and these claimants received 56% of the total settlements Mercer Oliver Wyman 4 c:\documents and settings\pelliott\my documents\my working papers\nfld-closed claim survey update\ppv-report-update.doc

7 Private Passenger Automobile - Excluding Farmers Closed Claim Survey Newfoundland and Labrador 3 Exhibits- Description Exhibits 1 to 6 summarize some of the data collected in the 1369 claimant records. In the Exhibits, settlement amounts include all components of the settlement amount paid out, but exclude the allocated loss adjustment expenses. Reference to invalid data implies the data field was either blank or miscoded. Exhibit 1- summarizes the responses to various questions that describe the claimant, the accident circumstances and 1 st party information. Exhibit 2- summarizes the claimant injury profiles based on the 34 injury types. For each of the injury types, the 1369 claimants are distributed among four categories: only this injury - meaning that this particular injury was suffered by the claimant and no other, or this injury and other injuries -meaning the claimant suffered this particular injury and at least one of the other injury types, or only other injuries - meaning this particular injury type was not suffered by the claimant, or no injury - meaning no injuries were suffered by the claimant. Exhibit 3- similar to Exhibit 2, but summarizes the claimants with neck, back and other strains or sprains, knee injury and shoulder injury profiles. Mercer Oliver Wyman 5 c:\documents and settings\pelliott\my documents\my working papers\nfld-closed claim survey update\ppv-report-update.doc

8 Private Passenger Automobile - Excluding Farmers Closed Claim Survey Newfoundland and Labrador Exhibit 4- summarizes the settlement amounts among the subcategories of the four category of damages Special Damages, General Damages, Total Settlement Amount and Allocated Loss Adjustment Expenses Exhibit 5- summarizes the distribution of non-pecuniary settlement amounts and claimants among various size ranges. Mercer Oliver Wyman 6 c:\documents and settings\pelliott\my documents\my working papers\nfld-closed claim survey update\ppv-report-update.doc

9 Mercer Oliver Wyman Actuarial Consulting, Ltd. BCE Place, 161 Bay Street Toronto, Ontario Canada M5J 2S5

10 Exhibit 1 Page 1 Newfoundland and Labrador Private Passenger Automobile Closed Tort BI Claimant Survey of Claims Closed July 1, 2001 to June 30, 2004 General Claimant and First Party Questions Summary of Aggregate Responses to: Q # 04 Accident Year Number of Claimants Amount of Settlements* Settlement % 507, % 507, % 440, % 146, % 647, % 92, % 931, % 66, % 1,445, % 72, % 735, % 30, % 2,575, % 50, % 4,996, % 39, % 7,318, % 25, % 7,211, % 18, % 2,945, % 11, % 1,038, % 6, % 56, % 2,679 Total Valid 1, % 30,848, % 22,534 Total Invalid % % - Q # 06 Accident Location Number of Claimants Amount of Settlements* Settlement 1 Newfoundland and Labrador 1, % 30,471, % 22,522 2 Other Canadian Province % 317, % 26,449 3 United States % 59, % 14,882 4 All Other % % - Total Valid 1, % 30,848, % 22,534 Total Invalid % % - Q # 07 Number of Vehicles in Accident 1 One % 3,003, % 24,026 2 Two 1, % 24,830, % 22,052 3 Three or more % 3,014, % 25,546 Total Valid 1, % 30,848, % 22,534 Total Invalid % % - Q # 08 Coverage Indicator - Bodily Injury Portion 1 Third Party Liability 1, % 29,847, % 22,358 2 Uninsured Motorist % 1,001, % 29,445 3 SEF % % - Total Valid 1, % 30,848, % 22,534 Total Invalid % % - Q # 09 Coverage Limit ($000) % 5,892, % 26, % 280, % 15, % 13,512, % 22, % 10,572, % 20, % 133, % 13, % 456, % 228,432 Total Valid 1, % 30,848, % 22,534 Total Invalid % % - Mercer Oliver Wyman

11 Exhibit 1 Page 2 Q # 10 1st Party Vehicle Involvement 1 No 1st party vehicle involved % 529, % 24,048 2 Vehicle listed on your policy 1, % 30,158, % 22,489 3 Any other vehicle % 161, % 26,912 Total Valid 1, % 30,848, % 22,534 Total Invalid % % - Q # 11 1st Party % Degree of Fault 0 0% to 9% % 709, % 22, % to 19% % 5, % 5, % to 24% % 12, % 12, % to 32% % 77, % 12, % to 49% % 3, % % to 59% % 859, % 14, % to 69% % 5, % 5, % to 74% % 130, % 130, % to 79% % 190, % 27, % to 84% % 217, % 72, % to 89% % 30, % 30, % to 99% % 2, % 2, % 1, % 28,605, % 22,811 Total Valid 1, % 30,848, % 22,534 Total Invalid % % - Q # 12 1st Party Vehicle Type 1 Car 1, % 22,996, % 22,747 2 Truck or van % 7,851, % 21,933 Total Valid 1, % 30,848, % 22,534 Total Invalid % % - Q # 13 1st Party Vehicle Territory % 20,046, % 22, % 2,747, % 33, % 972, % 36, % 7,081, % 19,402 Total Valid 1, % 30,848, % 22,534 Total Invalid % % - Q # 14 1st Party Vehicle Type of Use Class % 12,045, % 21, % 12,219, % 21, % 1,174, % 41, % 266, % 12, % 916, % 20, % 556, % 27, % 550, % 55, % 381, % 29, % 485, % 25, % 906, % 27, % 632, % 30, % 239, % 15, % 473, % 21,514 Total Valid 1, % 30,848, % 22,534 Total Invalid % % - Mercer Oliver Wyman

12 Exhibit 1 Page 3 Q # 15 Claimant Number % 24,328, % 24, % 4,881, % 17, % 1,292, % 17, % 246, % 12, % 92, % 30, % 2, % 2, % 2, % 2, % 1, % 1,400 Total Valid 1, % 30,848, ,534 Total Invalid % % - Q # 16 Claimant Relationship to Policy 1 Driver of 3rd Party Vehicle % 18,987, % 23,734 2 Passenger in/on 3rd Party Vehicle % 7,389, % 19,498 3 Driver of 1st Party Vehicle % 704, % 32,015 4 Named Insured Passenger in 1st Party Vehicle % 457, % 38,130 5 Other Passenger in 1st Party Vehicle % 1,908, % 18,348 6 Pedestrian or Bicyclist % 1,395, % 27,911 7 All Other % 6, % 3,000 Total Valid 1, % 30,848, % 22,534 Total Invalid % % - Q # 17 Claimant Age 10 Less than or equal to % 370, % 11, to % 2,850, % 16, to % 8,375, % 22, to % 8,451, % 26, to % 6,809, % 26, to % 2,592, % 20, to % 835, % 17, to % 372, % 14, to % 50, % 8,399 Greater than % % - Total Valid 1, % 30,708, % 22,680 Total Invalid % 139, % 9,319 Q # 18 Claimant Sex 1 Male % 13,081, % 20,698 2 Female % 17,767, % 24,108 Total Valid 1, % 30,848, % 22,534 Total Invalid % % - Q # 19 Claimant Marital Status 1 Single % 13,081, % 21,031 2 Married, including Common Law % 17,767, % 26,558 Total Valid 1, % 30,848, % 23,895 Total Invalid % % - Q # 20 Claimant Dependant Status 1 Claimant is a dependant % 3,221, % 18,407 2 Claimant is not a dependant, and has 0 dependants % 12,051, % 20,886 3 Claimant has 1 dependant % 5,822, % 25,764 4 Claimant has 2 dependants % 4,055, % 22,910 5 Claimant has 3 dependants % 2,867, % 39,831 6 Claimant has 4 or more dependants % 789, % 30,367 Total Valid 1, % 28,807, % 22,991 Total Invalid % 2,040, % 17,593 Mercer Oliver Wyman

13 Exhibit 1 Page 4 Q # 21 Claimant Employment Status 1 Regular full time employed % 14,925, % 26,845 2 Regular part time employed % 2,361, % 20,899 3 Seasonally employed % 1,717, % 23,208 4 Self-Employed % 1,809, % 27,846 5 Homemaker % 1,372, % 18,797 6 Student or Preschooler % 4,281, % 22,414 7 Retired % 1,270, % 15,886 8 Other unemployed % 2,505, % 16,165 9 Other % 530, % 11,291 Total Valid 1, % 30,774, % 22,729 Total Invalid % 73, % 4,916 Q # 22 Claimant Type of Employment 1 Not applicable, since unemployed % 8,463, % 19,914 2 Managerial % 1,385, % 28,867 3 Professional % 4,818, % 29,563 4 Clerical % 3,915, % 22,897 5 Manual % 8,279, % 26,970 6 Other % 3,785, % 16,603 Total Valid 1, % 30,648, % 22,838 Total Invalid % 200, % 7,408 Q # 23 Claimant Gross Employment Income 5000 Less than or equal to $5, % 13,102, % 17, $5,000 < and <= $10, % 810, % 18, $10,000 < and <= $20, % 5,637, % 32, $20,000 < and <= $30, % 4,342, % 32, $30,000 < and <= $40, % 3,169, % 32, $40,000 < and <= $50, % 1,413, % 33, $50,000 < and <= $60, % 767, % 33, $60,000 < and <= $70, % 89, % 14, $70,000 < and <= $80, % 2, % 2, $80,000 < and <= $90, % 436, % 145, $90,000 < and <= $100, % 44, % 44, $100,000 < and <= $110, % % $110,000 < and <= $120, % % $120,000 < and <= $150, % % $150,000 < and <= $175, % % $175,000 < and <= $200, % % $200,000 < and <= $225, % 45, % 45, $225,000 < and <= $250, % % - Greater than $250, % % - Total Valid 1, % 29,861, % 23,131 Total Invalid % 986, % 12,653 Q # 24 Claimant % Degree of Innocence % 6, % 1, % 2, % 2, % 30, % 30, % 39, % 19, % 20, % 20, % 628, % 16, % 3, % % 130, % 130, % 203, % 29, % 187, % 31, % 5, % 5, , % 29,592, % 22,728 Total Valid 1, % 30,848, % 22,534 Total Invalid % % - Mercer Oliver Wyman

14 Exhibit 1 Page 5 Q # 25 Claimant Vehicle Type 1 No claimant vehicle involved % 3,065, % 29,198 2 Car % 21,133, % 21,809 3 Truck or van % 6,354, % 22,615 4 Motorcycle, including off-road motorcycle % 214, % 35,748 5 Bus, including school bus % % - 6 Snow vehicle % % - 7 All other, including all terrain vehicles and motorhomes % 80, % 10,025 Total Valid 1, % 30,848, % 22,534 Total Invalid % % - Q # 26 Seat Belt Use 1 Claimant seat belt engaged at time of accident 1, % 24,575, % 22,608 2 Claimant seat belt not engaged at time of accident % 1,583, % 28,285 3 Seat belt status at time of accident unknown % 3,853, % 20,942 Total Valid 1, % 30,012, % 22,617 Total Invalid % 836, % 19,907 Q # 27 Claimant Method of Settlement 1 Court trial, no appeal % 278, % 139,250 2 Court trial, after claimant appeal % 120, % 120,191 3 Court trial, after carrier appeal % 62, % 62,000 4 Settled by parties-with or without legal counsel 1, % 27,799, % 20,777 5 Settled by mediation % 531, % 75,891 6 Settled by binding arbitration % % - 7 Settled at pre-trial settlement conference % 1,850, % 97,369 Total Valid 1, % 30,641, % 22,399 Total Invalid % 207, % 207,324 Q # 28 Claimant Type of Settlement 1 Some element of structured settlement % 2,000, % 125,055 2 No element of structured settlement 1, % 28,847, % 21,321 Total Valid 1, % 30,848, % 22,534 Total Invalid % % - Q # 29 Claimant Legal Representation 1 Claimant presented by legal counsel % 27,312, % 32,553 2 Claimant not represented by legal counsel % 3,536, % 6,672 Total Valid 1, % 30,848, % 22,534 Total Invalid % % - Q # 32 Claimant Injury 1 Claimant suffered no injury % 2, % Claimant suffered one or more injuries 1, % 30,846, % 22,731 Total Valid 1, % 30,848, % 22,534 Total Invalid % % - Q # 33 Independent Medical Exam 1 Not requested 1, % 26,205, % 19,808 2 Requested but not conducted % 699, % 77,719 3 Requested and conducted % 3,940, % 109,462 Total Valid 1, % 30,845, % 22,548 Total Invalid % 3, % 3,000 Mercer Oliver Wyman

15 Exhibit 2 Page 1 Newfoundland and Labrador Private Passenger Automobile Closed Tort BI Claimant Survey of Claims Closed July 1, 2001 to June 30, 2004 Injury Profiles Summary of Aggregate Responses to Q #32 Claimant Injury Profile 1 Deceased Only This Injury % 92, % 46,000 This Injury + Other Injuries % % - Only Other Injuries 1, % 30,624, % 22,684 2 Quadriplegia, complete or incomplete Only This Injury % % - This Injury + Other Injuries % % - Only Other Injuries 1, % 30,716, % 22,719 3 Paraplegia or hemiplegia, complete or incomplete Only This Injury % % - This Injury + Other Injuries % % - Only Other Injuries 1, % 30,716, % 22,719 4 Permanent brain injury Only This Injury % % - This Injury + Other Injuries % 217, % 217,436 Only Other Injuries 1, % 30,498, % 22,575 5 Amputation of or permanent loss of use of a major member Only This Injury % % - This Injury + Other Injuries % % - Only Other Injuries 1, % 30,716, % 22,719 Mercer Oliver Wyman

16 Exhibit 2 Page 2 6 Amputation of or permanent loss of use of any other body part Only This Injury % % - This Injury + Other Injuries % % - Only Other Injuries 1, % 30,716, % 22,719 7 Permanent loss of a sense Only This Injury % % - This Injury + Other Injuries % 377, % 188,720 Only Other Injuries 1, % 30,338, % 22,473 8 Internal organ injury Only This Injury % % - This Injury + Other Injuries % 445, % 63,634 Only Other Injuries 1, % 30,270, % 22,506 9 Fracture of weight-bearing bone(s) Only This Injury % 169, % 28,247 This Injury + Other Injuries % 1,698, % 89,374 Only Other Injuries 1, % 28,848, % 21, Other fracture(s) Only This Injury % 125, % 31,324 This Injury + Other Injuries % 2,644, % 61,493 Only Other Injuries 1, % 27,946, % 21, Permanent disfigurement or scarring Only This Injury % % - This Injury + Other Injuries % 846, % 120,994 Only Other Injuries 1, % 29,869, % 22,207 Mercer Oliver Wyman

17 Exhibit 2 Page 3 12 Serious laceration(s) Only This Injury % 1, % 1,000 This Injury + Other Injuries % 1,537, % 102,484 Only Other Injuries 1, % 29,177, % 21, Serious burn(s) Only This Injury % 22, % 22,500 This Injury + Other Injuries % 28, % 28,225 Only Other Injuries 1, % 30,665, % 22, Neck strain or sprain - Mild Only This Injury % 1,098, % 6,243 This Injury + Other Injuries % 7,394, % 15,534 Only Other Injuries % 22,223, % 31, Neck strain or sprain - Moderate Only This Injury % 1,413, % 26,177 This Injury + Other Injuries % 11,777, % 43,620 Only Other Injuries 1, % 17,525, % 17, Neck strain or sprain - Severe Only This Injury % % - This Injury + Other Injuries % 2,670, % 121,395 Only Other Injuries 1, % 28,045, % 21, Back strain or sprain - Mild Only This Injury % 503, % 6,995 This Injury + Other Injuries % 6,890, % 17,533 Only Other Injuries % 23,321, % 26,293 Mercer Oliver Wyman

18 Exhibit 2 Page 4 18 Back strain or sprain - Moderate Only This Injury % 523, % 24,930 This Injury + Other Injuries % 8,187, % 39,747 Only Other Injuries 1, % 22,004, % 19, Back strain or sprain - Severe Only This Injury % 68, % 34,289 This Injury + Other Injuries % 3,723, % 155,128 Only Other Injuries 1, % 26,924, % 20, Knee injury - Minor Only This Injury % 53, % 6,674 This Injury + Other Injuries % 1,302, % 25,056 Only Other Injuries 1, % 29,359, % 22, Knee injury - Other Only This Injury % 39, % 9,980 This Injury + Other Injuries % 868, % 54,292 Only Other Injuries 1, % 29,807, % 22, Shoulder injury - Minor Only This Injury % 85, % 7,140 This Injury + Other Injuries % 4,534, % 18,892 Only Other Injuries 1, % 26,096, % 23, Shoulder injury - Other Only This Injury % 182, % 30,377 This Injury + Other Injuries % 4,468, % 53,835 Only Other Injuries 1, % 26,065, % 20,638 Mercer Oliver Wyman

19 Exhibit 2 Page 5 24 Other strain or sprain - Minor Only This Injury % 59, % 4,226 This Injury + Other Injuries % 2,391, % 24,654 Only Other Injuries 1, % 28,265, % 22, Other strain or sprain - Other Only This Injury % 15, % 15,000 This Injury + Other Injuries % 1,046, % 41,864 Only Other Injuries 1, % 29,654, % 22, Temporomandibular joint (TMJ) dysfunction Only This Injury % % - This Injury + Other Injuries % 1,882, % 44,826 Only Other Injuries 1, % 28,833, % 22, Fibromyalgia Only This Injury % % - This Injury + Other Injuries % 1,972, % 116,024 Only Other Injuries 1, % 28,743, % 21, Chronic pain syndrome Only This Injury % % - This Injury + Other Injuries % 4,391, % 115,577 Only Other Injuries 1, % 26,324, % 20, Concussion Only This Injury % % - This Injury + Other Injuries % 1,753, % 70,152 Only Other Injuries 1, % 28,962, % 21,825 Mercer Oliver Wyman

20 Exhibit 2 Page 6 30 Post concussion syndrome Only This Injury % % - This Injury + Other Injuries % 969, % 138,454 Only Other Injuries 1, % 29,746, % 22, Contusion Only This Injury % 2, % 699 This Injury + Other Injuries % 2,259, % 26,278 Only Other Injuries 1, % 28,453, % 22, Psychological/emotional injury Only This Injury % 2, % 2,000 This Injury + Other Injuries % 3,723, % 95,467 Only Other Injuries 1, % 26,990, % 20, Minor laceration(s), burn(s), or contusion(s), or just "shaken up" Only This Injury % 115, % 3,732 This Injury + Other Injuries % 2,198, % 21,988 Only Other Injuries 1, % 28,401, % 23, All other injuries Only This Injury % 86, % 8,674 This Injury + Other Injuries % 2,071, % 29,596 Only Other Injuries 1, % 28,557, % 22,451 Mercer Oliver Wyman

21 Exhibit 3 Page 1 Newfoundland and Labrador Private Passenger Automobile Closed Tort BI Claimant Survey of Claims Closed July 1, 2001 to June 30, 2004 Combined Injury Profiles Summary of Aggregate Responses to Q #32 Claimant Injury Profile for the Following Injuries Grouped together: Neck Sprain/Strain - Mild Neck Sprain/Strain - Moderate Neck Sprain/Strain - Severe Back Sprain/Strain - Mild Back Sprain/Strain - Moderate Back Sprain/Strain - Severe Knee Injury - Minor Knee Injury - Other Shoulder Injury - Minor Shoulder Injury - Other Other Sprain/Strain - Minor Other Sprain/Strain - Other Inclusion for Group of Injuries # % $ % Avg Size Only at Least One of These 1, % 17,261, % 17,074 At Least One of These + Other % 11,682, % 46,545 Only Other Injuries % 1,771, % 19,686 Mercer Oliver Wyman

22 Exhibit 4 Page 1 Newfoundland and Labrador Private Passenger Automobile Closed Tort BI Claimant Survey of Claims Closed July 1, 2001 to June 30, 2004 Summary of Damage Amounts Summary of Aggregate Responses to Q #34 Special Damage Amounts Amount of Settlements Category of Damages $ % # of Claimants 1,369 Past loss of employment income 2,914, % Past loss of other income 120, % Past medical/rehabilitation/care 1,057, % past replacement services 711, % Funeral 10, % Other 177, % Data adjustment* 21, % Total Special 5,012, % Total Settlement (excl. ALAE) 30,848, % Summary of Aggregate Responses to Q #35 General Damage Amounts Amount of Settlements Category of Damages $ % # of Claimants 1,369 Non-pecuniary (pain & suffering) 18,623, % Future loss of employment income 3,056, % Future medical/rehabilitation/care 858, % Future replacement services 1,286, % Gross-up for tax & fund management 50, % Other 98, % Data adjustment* (41,050) -0.13% Total General 23,931, % Total Settlement (excl. ALAE) 30,848, % Summary of Aggregate Responses to Q #36 Total Settlement Amount Amount of Settlements Category of Damages $ % # of Claimants 1,369 Total special 5,012, % Total general 23,931, % Punitive damages 49, % Prejudgment Interest 1,454, % Party and party costs 510, % Auto no-fault (section B) offset 61, % Collateral source offset 5, % Data adjustment* (42,285) -0.14% Total Settlement (excl. ALAE) 30,848, % Summary of Aggregate Responses to Q #37 Allocated Loss Adjustment Expenses Amount of Settlements Category of Damages $ % # of Claimants 1,369 Legal fees (internal and/or external) 2,108, % Independent (external) adjuster fees 436, % Expert fees (including medical) 254, % Other 242, % Data adjustment* (9,341) -0.03% Total ALAE 3,032, % Total Settlement (excl. ALAE) 30,848, % * Data adjustment reflects the difference between the hard coded sums and the calculated sums of the underlying components. Mercer Oliver Wyman

23 Exhibit 5 Page 1 Newfoundland and Labrador Private Passenger Automobile Closed Tort BI Claimant Survey of Claims Closed July 1, 2001 to June 30, 2004 Pain and Suffering Settlement Amount Distribution Breakdown of Non-pecuniary (pain & suffering) # % $ % Avg Size 0 $ % % $0 < and <= $2,500 ## % 349, % 1, $2,500 < and <= $4,000 ## % 334, % 3, $4,000 < and <= $5, % 413, % 4, $5,000 < and <= $7,500 ## % 667, % 6, $7,500 < and <= $10,000 ## % 1,194, % 9, $10,000 < and <= $12, % 993, % 11, $12,500 < and <= $15,000 ## % 1,586, % 14,294 ##### Greater than $15,000 ## % 13,084, % 28,017 Total Valid 1, % 18,623, % 13,613 Total Invalid % % - Mercer Oliver Wyman

24 LIST OF CARRIERS PARTICIPATING IN THE 2004 NEWFOUNDLAND & LABRADOR PRIVATE PASSENGER VEHICLE CLOSED CLAIM STUDY Reported 2003 Written Premiums by Line of Business Automobile Insurance Private Passenger Commercial Auto Total Unifund 1 49,974, % % 49,974,000 Aviva 30,292, % 4,907, % 35,200,074 Icon 26,431, % 259, % 26,691,657 Cooperators 22,010, % 506, % 22,516,586 Dominion 12,856, % 3,938, % 16,795,095 Metro 13,509, % 469, % 13,979,324 Colonial 11,322, % % 11,322,000 Royal 1,600, % 2,500, % 4,100,000 Atlantic 185, % 4,404, % 4,589, ,182, % 16,985, % 185,168,258 Industry Total 2 224,728,070 19,682, ,410,429 75% 86% 76% 1 As reported by Unifund in its 2003 P & C -1 Filing with the Superintendent of Insurance. All other companies reported individually the written automobile premiums by line to the Board. 2 Taken from IBC 2003 Actual Loss Ratio Exhibit, Atlantic Provinces, Product AU10-D Note: Exhibit provided by Newfoundland and Labrador Board of Commissioners of Public Utilities

25 INSTRUCTIONS TO CARRIERS PARTICIPATING IN THE 2004 NEWFOUNDLAND & LABRADOR PRIVATE PASSENGER VEHICLE CLOSED CLAIM STUDY Instructions 1. Complete this survey format for each Tort Bodily Injury claimant involved in each claim occurrence for all claims closed between July 1, 2001 and June 30, If more than one relevant coverage (i.e. TPL-BI, UM-BI, SEF 44) providing Tort BI is involved in the claim occurrence, complete one row for each Tort Bodily Injury claimant for each such coverage involved in each claim occurrence. The survey consists of 38 questions, numbered #1 to #38 and the questions numbered # 32, and have several parts. The entire sample data for all claimants should be provided in electronic format in the excel file, NFPPAnnn.xls (where nnn is your IBC company number), provided with the claims list. One excel file should be provided for each IBC company number (including Facility Association carrier company, if any) you use for reporting to IBC under the Automobile Statistical Plan. A paper copy of this survey form can be printed from the word document, for your convenience. (See Example Below) Example Company A has a claim occurrence on October 1, 1995 with a total of 5 claimants, claimant 01, 02, 03, 04 and 05. Claimants 01, 02 and 03 have settled with the company prior to July 1, Claimant 04 settles on June 30, 2002 and claimant 05 settles February 1, Claimant 05 had a claim under TPL BI and SEF 44. All documentation and information necessary to complete the file has been received and the company closes the file on April 30, An Excel entry is required to be completed for all claimants. In the case of claimant 05, two such entries are required, one for the TPL BI component and the second for the SEF 44 component. The information to be reported in question # 5 for each claimant will be the file closure date of April 30, The information to be reported in question # 31 for each claimant will be the date on which the last payment to that claimant is made. This date will be prior to the Closed Claim Survey period in the case of claimants 01, 02 and 03 and within the survey period for claimants 04 and All claimant demographic information should be as of the date of accident. Each claimant is to be interpreted as each injured person, regardless of who may actually be claiming damages (e.g. survivors in the case where the injured person is deceased).

26 3. All fields must be completed. 4. All dates are in "YYYYMMDD" numeric format. 5. All $ amounts are in whole $ (no cents). Some $ amounts are totals of other $ amounts also shown. These totals must be equal to the sum of their parts. 6. All settlement amounts are to be shown gross of reinsurance recoveries, if any. Where breakdowns of settlement amounts by heads of damage are required, these should be obtained from the award in the judgment in the case, after reduction for contributory negligence, if any. If no such award exists (i.e. "sidewalk" settlement), then these breakdowns should be estimated in a reasonable fashion by a claims expert. One way to do this might be to take the latest settlement offer produced by the claimant's legal counsel (when relevant), drop any heads of damage which the insurer thinks to be unreasonable, and prorate the actual settlement amount in proportion to the remaining heads of damage in the offer. 7. Your coded survey records, which you have checked, will be vetted and may be audited by the Board. 8. For each claimant survey record which you have coded, please provide the excel file "NFPPAnnn.xls (where 'nnn' is your IBC Company Number) with data containing one row per survey record coded and columns containing the data fields for each of the 38 questions. This file should be vetted prior to submission. 9. FOLLOWING VERIFICATION BY COMPANY PERSONNEL, ALL FILES ARE TO BE SUBMITTED TO MR. BERN FITZPATRICK AT bernfitzpatrick@nf.sympatico.ca WITH A COPY TO MR. ROBERT BYRNE AT rbyrne@pub.nl.ca. FILES ARE NOT TO BE SUBMITTED DIRECTLY TO THE BOARD S CONSULTING ACTUARY.

27 Additional Directions and Clarifications After discussion with claims personnel and the Actuary, it is apparent that the following additional directions are in order. Should additional issues, questions or clarification arise regarding the information required or the manner of reporting the same, please ensure you contact the Board s Insurance Consultant, Mr. Bern Fitzpatrick. 1. Questions 2 and 3 Policy/Claim number. This should be identical to the company s numbers, including spaces and dashes etc. 2. Question 5 - Closed claim date. This is the date the company has received all documentation and information necessary to consider the matter finalized and close the file. 3. Questions 12, 13 and 14 1st Party vehicle. The correct designations as determined by the IBC Statistical Plan are to be provided. Where a company uses a designation other than the IBC Statistical Plan, then they must manually convert their information to reflect the correct IBC Statistical Plan coding. For greater certainty, under question 13, the IBC Statistical Plan Territorial codes are 004, 005, 006 and Question 15-Claimant Identifier. Each claimant within a claim occurrence must be assigned a number to identify the claimant. A separate entry/questionnaire is to be completed for each claimant. In cases where a claim with multiple claimants with an occurrence date prior to the study period and where the file is closed during the study period, and, where one or more claimants settled prior to the commencement of the study period, an entry must be completed for all claimants even those that settled prior to the study period. 5. Question 21 Employment. Where the claimant fits into more than one category this should be answered with the persons long term priority in life, ie a student who works part-time would be coded as a student. If you do not know the answer to this question you may answer other. 6. Question 23-Employment Income. If you do not know the claimants employment income you should answer $0.

28 7. Question 30-First Payment. This is the date of the first payment made by the insurer in connection with the claimant, either to or on behalf of the claimant. Any expense incurred in connection with the claim would be relevant, including allocated loss adjustment expenses. 8. Question 31-Settlement Date. This is the date on which the insurer makes the final payment to the claimant who was identified in question # 15. This date may occur prior to the study period in cases where a claim is opened for multiple claimants, some or all of whom settle prior to the commencement of the study period but where the file closes within the study period. 9. Question 32- Injury Type. All fields must be completed. This is necessary for the actuary to manipulate the data. To streamline the data collection process you may wish to set up the spreadsheet so that the fields contain a 2 unless changed when you complete the survey. You should note that there will often be more than one field coded as 1 as all of the claimants injuries should be reflected. 10. A Blank field will result in rejection of the entry and will be returned to the company for correction.

29 #1 IBC Company Number Numeric 3 Your Company Number assigned by IBC for reporting under Auto Statistical Plan #2 Company Policy Identification Number Alpha/Numeric 15, Left Justified Your Policy Number of responding Newfoundland Auto Insurance Policy #3 Company Claim Occurrence Identification Number Alpha/Numeric 15, Left Justified Your Claim Number for Claim Occurrence #4 Accident Date Numeric 8, YYYYMMDD Date of accident in YYYYMMDD format #5 Date Claim Occurrence (File) Closed Numeric 8, YYYYMMDD Date that this claim occurrence was finally closed in YYYYMMDD format #6 Accident Location Numeric 1 1 = Newfoundland and Labrador 2 = Other Canadian Province 3 = United States 4 = All Other

30 #7 Number of Vehicles in Accident Numeric 1 1 = One 2 = Two 3 = Three or more #8 Coverage Indicator- Bodily Injury Portion Numeric 1 1 = Third Party Liability 2 = Uninsured Motorist 3 = SEF 44 #9 Coverage Limit Numeric 8, Right Justified Whole $ Maximum amount payable under coverage indicated (Generally, for TPL, the Policy Limit; for UM, the minimum limit in the accident jurisdiction, and for SEF 44 the difference between your policyholder's policy limit and the 3rd party's policy limit) #10 1st Party Vehicle Involvement Numeric 1 1 = No 1st Party vehicle involved (e.g. pedestrian under SEF 44 coverage) 2 = Vehicle listed on your policy 3 = Any other vehicle #11 1st Party % Degree of Fault Numeric 3, Right Justified Your assessment of the percentage of fault of your insured in the accident (must be 001 or greater)

31 #12 1st Party Policy Vehicle Type Numeric 1 1 = Car 2 = Truck or Van Code vehicle type for PPA vehicle on policy which claim is charged to as per IBC Statistical Plan #13 1st Party Vehicle Territory (IBC STAT PLAN) Numeric IBC statistical territory for reporting under Auto Statistical Plan (codes 004, 005, 006 or 007) #14 1st Party Vehicle Type of Use Class (IBC STAT PLAN) Numeric 2, Right Justified IBC type of use class for reporting under Auto Statistical Plan (must be a Private Passenger code, i.e., one of 01, 02, 03, 04, 05, 06, 07, 08, 09, 10, 11, 12, 13, 18, 19) #15 Claimant Number Numeric 2, Right Justified A unique number (01, 02, 03, etc.) up to two digits to identify each claimant within a claim occurrence (Code 01 if this is the only claimant for this claim occurrence) #16 Claimant Relationship to Policy Numeric 1 1 = Driver of 3rd Party Vehicle 2 = Passenger in/on 3rd Party Vehicle 3 = Driver of 1st Party Vehicle 4 = Named Insured Passenger in 1st Party Vehicle 5 = Other Passenger in 1st Party Vehicle 6 = Pedestrian or Bicyclist 7 = All Other

32 #17 Claimant Age Numeric 2, Right Justified Age in years of claimant (under age 1, code 01; over age 99, code 99) #18 Claimant Sex Numeric 1 1 = Male 2 = Female #19 Claimant Marital Status Numeric 1 1 = Single 2 = Married, including Common Law #20 Claimant Dependant Status Numeric 1 1 = Claimant is a dependant 2 = Claimant is not a dependant, and has 0 dependants 3 = Claimant has 1 dependant 4 = Claimant has 2 dependants 5 = Claimant has 3 dependants 6 = Claimant has 4 or more dependants

33 #21 Claimant Employment Status Numeric 1 1 = Regular full time employed 2 = Regular part time employed 3 = Seasonally employed 4 = Self-Employed 5 = Homemaker 6 = Student or Preschooler 7 = Retired 8 = Other unemployed 9 = Other #22 Claimant Type of Employment Numeric 1 1 = Not applicable, since unemployed 2 = Managerial 3 = Professional 4 = Clerical 5 = Manual 6 = Other #23 Claimant Gross Employment Income Numeric 7, Right Justified, whole $ Claimant's annual gross income from employment in whole $ (code if not employed) #24 Claimant % Degree of Innocence Numeric 3, Right Justified Your assessment of the percentage of innocence of this claimant in the accident (e.g. complement of percentage reduction in damages based on contributory negligence, when relevant; must be 001 or greater)

34 #25 Claimant Vehicle Type Numeric 1 1 = No claimant vehicle involved 2 = Car 3 = Truck or Van 4 = Motorcycle, including off-road motorcycle 5 = Bus, including school bus 6 = Snow vehicle 7 = All other, including all terrain vehicles and motorhomes #26 Seat Belt Use Numeric 1 1 = Claimant seat belt engaged at time of accident 2 = Claimant seat belt not engaged at time of accident 3 = Seat belt status at time of accident unknown #27 Claimant Method of Settlement Numeric 1 1 = Court trial, no appeal 2 = Court trial, after claimant appeal 3 = Court trial, after carrier appeal 4 = Settled by parties-with or without legal counsel 5 = Settled by mediation 6 = Settled by binding arbitration 7 = Settled at pre-trial settlement conference #28 Claimant Type of Settlement Numeric 1 1 = Some element of structured settlement 2 = No element of structured settlement

35 #29 Claimant Legal Representation Numeric 1 1 = Claimant represented by legal counsel 2 = Claimant not represented by legal counsel #30 Date of First Payment Numeric 8, YYYYMMDD Date of first payment for this claimant in YYYYMMDD format #31 Claimant Settlement Date Numeric 8, YYYYMMDD Date of settlement (final payment) for this claimant in YYYYMMDD format #32 Claimant Injury Numeric 1 1 = Claimant suffered no injury; fill in all questions 32A-1 to 32A-34 as 2 2 = Claimant suffered one or more injuries: complete all questions 32A-1 to 32A-34 appropriately

36 #32-A Claimant Injury Profile 35 x Numeric 1 Deceased 1 Quadriplegia, complete or incomplete 2 Paraplegia or hemiplegia, complete or incomplete 3 Permanent brain injury 4 Amputation of or permanent loss of use of a major member (i.e. leg, foot, arm, hand) 5 Amputation of or permanent loss of use of any other body part 6 Permanent loss of a sense (e.g. sight, hearing, smell, taste, touch) 7 Internal organ injury 8 Fracture of weight-bearing bone(s) 9 Other fracture(s) 10 Permanent disfigurement or scarring 11 Serious laceration(s) 12 Serious burn(s) 13 Neck strain or sprain Mild injury 14 Neck strain or sprain Moderate injury 15

37 #32-A Claimant Injury Profile 35 x Numeric 1 Neck strain or sprain Severe injury 16 Back strain or sprain Mild injury 17 Back strain or sprain Moderate injury 18 Back strain or sprain Severe injury 19 Knee injury Minor 20 Knee injury Other 21 Shoulder injury Minor 22 Shoulder injury Other 23 Other strain or sprain Minor 24 Other strain or sprain Other 25 Temporomandibular joint (TMJ) dysfunction 26 Fibromyalgia 27 Chronic pain syndrome 28 Concussion 29 Post concussion syndrome

38 #32-A Claimant Injury Profile 35 x Numeric 1 30 Contusion 31 Psychological/emotional injury 32 Minor laceration(s), burn(s), or just shaken up 33 All other injuries 34 1 = Claimant did suffer this injury 2 = Claimant did not suffer this injury Code 1 for each injury category which applies, and 2 for each injury category which does not apply (code all categories #1 to 34 as 2 only if there was no discernible injury to the claimant ) #33 Independent Medical Exam Numeric 1 1 = Not requested 2 = Requested but not conducted 3 = Requested and conducted

39 #34 Claimant Settlement Special Damage Amounts 7 x Numeric 7, Right Justified, whole $ Past Loss of Employment Income 1 Past Loss of Other Income 2 Past Medical/Rehabilitation/Care 3 Past Replacement Services 4 Funeral 5 Other 6 Total Special (Sum of above 6) Last row must be sum of 6 rows above (enter 0 for each category which does not apply; enter amounts after consideration of contributory negligence)

40 #35 Claimant Settlement General Damage Amounts 7 x Numeric 7, Right Justified, whole $ Non-Pecuniary (Pain & Suffering) 1 Future Loss of Employment Income 2 Future Medical/Rehabilitation/Care 3 Future Replacement Services 4 Gross-Up for Tax & Fund Management 5 Other 6 Total General (Sum of above 6) Last row must be sum of 6 rows above (enter 0 for each category which does not apply; enter amounts after consideration of contributory negligence)

41 #36 Claimant Total Settlement Amount 8 x Numeric 7, Right Justified, whole $ Total Special (from #34 above) 1 + Total General (from #35 above) 2 + Punitive Damages 3 + Prejudgment Interest 4 + Party and Party Costs 5 - Auto No-Fault (Section B) Offset 6 - Collateral Source Offset 7 = Total Settlement Amount Enter 0 for each category which does not apply

42 #37 Claimant Allocated Loss Adjustment Expenses 5 x Numeric 7, Right Justified, whole $ Legal Fees (Internal and/or External) 1 Independent (External) Adjuster Fees 2 Expert Fees (including Medical) 3 Other 4 Total ALAE (Sum of above 4) 5 Last row must be sum of 4 rows above (enter 0 for each category which does not apply; enter amounts applicable to this claimant only) #38 Claimant Collateral Income Sources 6 x Numeric 1 Employer Plan (formal or not) 1 Private Plan 2 Employment Insurance 3 Canada Pension Plan 4 Workers' Compensation 5 Other 6 1 = This source known to be available to this claimant 2 = This source known to be unavailable to this claimant Enter the appropriate code for each of the above collateral source categories