Motorcycle fatalities on upswing despite record lows for car crash fatalities

[Avi Singh]

http://www.canadianunderwriter.ca/is...targ=DailyNews

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Motorcycles with anti-lock brakes are 37% less likely to be in fatal crashes per 10,000 registered vehicle years, according to the Insurance Institute for Highway Safety (IIHS).
Bike models with anti-locks also have 22% fewer claims for damage per insured vehicle year than the same models without antilock brakes, reports the Highway Loss Data Institute (HLDI). [A vehicle year is one vehicle insured for one year, two insured for six months, and so on.]
Crash avoidance technology like motorcycle anti-locks is especially important because more people are taking up riding and more are dying in crashes, says IIHS.
Rider deaths topped 5,000 in 2008 — more than in any other year since the U.S. federal government began collecting fatal crash data in 1975.
Motorcycle registrations also rose to 7.7 million in 2008, up from 4.3 in 2000.
The data is especially disturbing since the upswing has come amid record lows for fatalities in car crashes.
“Stopping a motorcycle is trickier than stopping a car,” the IIHS said. “In an emergency, a [motorcycle] rider faces a split-second choice to either brake hard, which can lock the wheels and cause an overturn, or hold back on braking and risk running into the emergency.”
Anti-locks can help reduce brake pressure when they detect impending lockup and increase pressure when traction is restored, “so riders may brake fully without fear of locking up.”
More than half of motorcycle owners surveyed by IIHS said they would get anti-locks on their next bikes.

[AdRath]

Is it saying that motorcycle deaths are up and ridership is up? or that the percentage of deaths/riders registered is up?

I think I need a midday coffee.

[GTASynthetics]

Having a motorcycle is more trendy now, unfortunately most riders probably shouldn't be riding, and when they are faced with difficulties like turns, corners, braking, and slow speed maneuvers, they get killed.

[VifferFun]

I wonder if the IIHS considered the types of bikes and their riders when comparing ABS bike crash statistics with non-ABS bikes? I'm guessing the answer is no, since it isn't mentioned.

Correct me if I'm wrong, but Sport bikes rarely have ABS. When I think ABS, I think Goldwing, VFR, etc. The ridership of these two groups are completely different. In addition, the people who opt to purchase the ABS option on their bike are probably quite risk averse to begin with (i.e. they are less likely to indulge in "risky" behaviour on the roadway).

[AFJ]

The figures quoted in the magazine article are for the USA. Canadian figures do not show the increasing trend which the US figures show.

Also, fatality rates on motorcycles are considerably higher in the US than in Canada. One significant factor in the higher US fatality rates is that 30 of the 50 states do not require adults to wear motorcycle safety helmets. A second significant factor is the much higher percentage of alcohol-involved motorcycle accidents. A third is the much longer riding season in the southern states than in Canada.

AFJ

[Avi Singh]

The figures quoted in the magazine article are for the USA. Canadian figures do not show the increasing trend which the US figures show.

Also, fatality rates on motorcycles are considerably higher in the US than in Canada. One significant factor in the higher US fatality rates is that 30 of the 50 states do not require adults to wear motorcycle safety helmets. A second significant factor is the much higher percentage of alcohol-involved motorcycle accidents. A third is the much longer riding season in the southern states than in Canada.

AFJ

Agreed that the article uses US information, but I found it interesting nonetheless especially given that some US companies that operate in Canada set their rates in the US.

[DJM]

I asked around while shopping for insurance 2 years ago. There was no difference in rates between an ABS and non-ABS version of my bike. Has this changed in Ontario?

[AFJ]

Agreed that the article uses US information, but I found it interesting nonetheless especially given that some US companies that operate in Canada set their rates in the US.

How would you like to name these companies?

It is my understanding that while companies may use any data or factors they like to assess the relative risk, that in the end the premium charged must relate to loss costs incurred in Ontario, the rates being subject to approval by the Financial Services Commission of this province.

AFJ

[CruisnGrrl]

re alcohol related....
I believe it's legal to sip beer while driving in texas, but not drive drunk...

[VifferFun]

How would you like to name these companies?

It is my understanding that while companies may use any data or factors they like to assess the relative risk, that in the end the premium charged must relate to loss costs incurred in Ontario, the rates being subject to approval by the Financial Services Commission of this province.

AFJ

Avi was likely referring to State Farm, who's actuarial analysis is done at their office south of the border. You are correct -- State Farm must use Ontario claims experience when setting rates in Ontario, and their analysis must be approved by FSCO.

[Avi Singh]

Avi was likely referring to State Farm, who's actuarial analysis is done at their office south of the border. You are correct -- State Farm must use Ontario claims experience when setting rates in Ontario, and their analysis must be approved by FSCO.

Allstate would be another example. While the data they use will be Ontario data for the purpose of setting rates, they can (and likely do) use data from their entire book of business to form underwriting philosophies.

[VifferFun]

Allstate would be another example. While the data they use will be Ontario data for the purpose of setting rates, they can (and likely do) use data from their entire book of business to form underwriting philosophies.

Allstate actually has its own Actuarial Department in Canada devoted specifically to Canadian analysis, and is completely independent of the Actuarial Department in the USA. They don't use American data in their decision processes.

[Avi Singh]

Allstate actually has its own Actuarial Department in Canada devoted specifically to Canadian analysis, and is completely independent of the Actuarial Department in the USA. They don't use American data in their decision processes.

For the actuarial calculations, agreed. For overall business philosophy, they are definitely an American company. A few years ago, they were considering leaving Canada - I can assure you the folks here weren't the ones who came up with the idea.

[VifferFun]

For the actuarial calculations, agreed. For overall business philosophy, they are definitely an American company. A few years ago, they were considering leaving Canada - I can assure you the folks here weren't the ones who came up with the idea.

I don't think they've considered leaving Canada within the last six or seven years . . . when are you referring to?

[Platinum Cycle]

For the actuarial calculations, agreed. For overall business philosophy, they are definitely an American company. A few years ago, they were considering leaving Canada - I can assure you the folks here weren't the ones who came up with the idea.

Really, are you telling me that the new Allstate Agents model (AIA) was modelled after the US? The Canadian model for Allstate Canada Group also have a large focus on the broker market (which I know you are aware of) unlike the American cousin.

You might want to reconsider your suggestion that the Canadian Operations business philosophy is spawned by the Americans.

You may actually see the Americans copy the Canadian sales model moving forward. Now I'd call that the tail wagging the dog.

[Avi Singh]

Really, are you telling me that the new Allstate Agents model (AIA) was modelled after the US? The Canadian model for Allstate Canada Group also have a large focus on the broker market (which I know you are aware of) unlike the American cousin.

You might want to reconsider your suggestion that the Canadian Operations business philosophy is spawned by the Americans.

You may actually see the Americans copy the Canadian sales model moving forward. Now I'd call that the tail wagging the dog.

I'm not saying that at all. The Canadian model was revised because something had to be done to increase Canadian sales figures. What I am saying though, is that the ultimate decision making power lies in the US. As such, I thought it was of interest that US fatalities are up, as it may (emphasis on may) influence underwriting philosophies moving forward.

Good ideas are good ideas regardless of where they come from, if the Canadian sales model is profitable then the US parent will likely implement it there. If a US underwriting philosophy shows profitability then it will likely be implemented here. I hope this clarifies.

[FiReSTaRT]

Fatalities are cheap. Long term care costs big bucks

[VifferFun]

I'm not saying that at all. The Canadian model was revised because something had to be done to increase Canadian sales figures. What I am saying though, is that the ultimate decision making power lies in the US. As such, I thought it was of interest that US fatalities are up, as it may (emphasis on may) influence underwriting philosophies moving forward.

Allstate US leaves the decision making power for rates, rules, and procedures with the Canadian office. If the Canadian operation were losing money, the the Americans would obviously become concerned, but they keep their nose out of the Canadian business for the most part.

Really, Canada is such an incredibly small portion of the Allstate parent's business. There is more premium in the state of California alone than in all of Canada combined. Most employees at Allstate US don't even know that Allstate has an operation in Canada.

[Platinum Cycle]

Allstate US leaves the decision making power for rates, rules, and procedures with the Canadian office. If the Canadian operation were losing money, the the Americans would obviously become concerned, but they keep their nose out of the Canadian business for the most part.

Really, Canada is such an incredibly small portion of the Allstate parent's business. There is more premium in the state of California alone than in all of Canada combined. Most employees at Allstate US don't even know that Allstate has an operation in Canada.

Most people in the US can't point to Canada on a MAP (even if it's labelled).