IBC Begins Live Testing of Critical Coverage Reporting

TORONTO, October 24, 2001 – Four insurance companies and more than
20 broker and agent offices have begun a six-week test of Critical Coverage Reporting
(CCR) in preparation for rollout of the Uninsured Vehicles (UV) Project next fall.

The UV Project is a joint undertaking between the insurance
industry and the Ontario Ministry of Transportation (MTO) that is aimed at reducing
uninsured vehicles on Ontario roads. Insurance Bureau of Canada (IBC) is building a
database of VINs from all insured vehicles in Ontario which MTO plans to check to
determine whether mandatory coverage exists when a vehicle owner wants to renew a licence plate.

CCR is a procedure through which brokers, agents and
insurers send time-sensitive changes to mandatory vehicle insurance coverage directly to
IBC faster than by regular reporting to IBC. Changes will be sent using IBC’s own
web-based application, CSIO-standard store and forward technology, and direct electronic exchange.

CCR will ensure that proof of insurance will be available
on-line before an insured renews a vehicle’s licence. If no proof of insurance can be
found at IBC, a customer could be denied plate renewal at MTO. A delay could cause the
customer unnecessary inconvenience and frustration.

Current plans include a second test group in February/March
2002 and accelerated province-wide rollout of CCR in April. In Fall 2002, MTO licensing
offices and kiosks will begin denial of licence plate renewals when mandatory insurance
cannot be verified on 1981 and newer, passenger-plated, privately owned or leased passenger vehicles.

“This step-by-step approach will ensure that all
stakeholders have sufficient time to fine-tune their systems, procedures and data quality
and be positioned for successful implementation next fall,” says Terri MacLean,
Executive Vice President and Chief Information Officer, IBC.

As part of its ongoing commitment to improving road user
safety, the Ministry of Transportation remains strongly committed to finding effective and
innovative ways to reduce the incidence of uninsured vehicles on Ontario’s roads. MTO
looks forward to a successful launch of the Uninsured Vehicles Project with IBC and all of
its key participants in the insurance industry.

The Insurance Bureau of Canada is the national trade
association of the private property and casualty insurance industry. It represents about
200 companies that provide more than 90 per cent of the non-government home, car and
business insurance in Canada. IBC is also the industry’s data repository. It maintains
statistics and information products on automobile, property and commercial liability
insurance across Canada, and it is the official statistical agency for automobile
insurance in Alberta, Ontario, Yukon, Northwest Territories, Nunavut and the Atlantic
Provinces and for commercial liability in Ontario. Visit the bureau’s website at
www.ibc.ca for more news releases and information.