April 18, 2018 07:00
Aldo Arcaro | Photo : Réjean Meloche
If the insurers were exchanged between them on their selection criteria in automotive, the costs of theft auto would be much less, believes Aldo Arcaro, consultant and president of the firm of Valori.
Mr. Arcaro is a well-known face in terms of damage insurance in Quebec, having worked in several companies over his career. He is notably the father of many programs in insurance, including Aladdin, launched in the early 2000s while he was working for The Canadian Union. He is also vice-chairman of the board of directors ofInfo-Crime.
It is, however, in a personal capacity that he desired to raise awareness of the Journal of the insurance to the problem of auto theft, a phenomenon that he has always closely followed. He said to lament that the insurers do not agree on the protection systems to require on a given vehicle.
Consumers are the biggest victims
The variations in requirements that are found from one insurer to the other benefit thieves, » he said. The insurers are the victims. Consumers are also costs, as the cost of the flying car is shifted via their insurance premium.
He pointed out that 20 years ago, insurers did not hesitate to share their criteria for protection. The industry showed a uniform response. He gives for example, the rise of the solutions of anti-theft by GPS in the mid-1990s. The thieves knew they only had to break the antenna on the cars for the short-circuit. The insurers have not been slow to cancel the discount they offered for this type of solutions. The race for market share has, however, changed the situation, » said Mr. Arcaro.
«The industry does its advertising around discounts that they offer to the consumers. It is correct that the insurers want to gain market share. However, when it is known that a particular model of car is among the most stolen, why does offer you a discount to the client who has it ? The insurance Bureau of Canada (IBC) does not cease to hammer out what are the most stolen vehicles. Let us listen to ! Insurers need to be more consistent. The efforts of those who have requirements are superseded by those who do not. «
The thieves are talking about !
Mr. Arcaro prevents the industry : the thieves speak of. «They are calling on insurers to see what protection is required for any vehicle. When they see that there is one that requires less protection, they are the target. «
It also indicates that the situation affects insurance brokers. When her client suffers a theft, it severely affects the ratio of loss of the portfolio of the broker. His commission contingent is lessened in the end, said Mr. Arcaro. «It does not help to decrease theft auto with the current practices. «
Another practice that deplores Mr. Arcaro : the insurers do not deal with the same way of the automobile insurance companies that the other. «An owner of an Infiniti, which is part of the models most frequently stolen, will be forced to install a protection system on his vehicle. However, if he is the owner of a fleet vehicle and he decides to add his Infiniti, he will not have protection obligations. It does not make sense. The thief cares about that this is a commercial vehicle or not. He wants the vehicle. Can we find a way to help each other in the industry to address this issue ? «
Be more aggressive towards thieves
He implores insurers do not adapt to their competitors when the time comes to establish the criteria of protection. «Adapt to the thieves ! «, he said.
Mr. Arcaro added that the industry needs to come to be more aggressive towards this type of practice. «It is necessary to keep the face of the thieves. It must hurt them in their pockets where, at this moment, they are doing wrong in our pockets. «
It also reminds us that the flying car represents 10 % of the premium of an auto insurance policy. «The consumer can get it back in his pockets ? This is disappointing ! It seems to me that we can talk a little more about what it takes to target. All the consumers might as well have big discounts. The financial situation of the industry would also be much better. «
Mr. Arcaro also said finding it hard to understand the reluctance of insurers in the field. «If you’ve taken a flight for you, you’ll lock your doors for you in the future, you’ll barricade the windows and install an alarm system. On theft auto, the insurance industry leaves the doors open. We see insurers who demand nothing. «, he said.