Come join the CIIA collision repair industry trade association at their evening workshops being planned soon for Burlington, Toronto, Cambridge, Concord, Ottawa, Windsor, Sarnia and Oshawa, this spring.
Meet with your fellow repairers, get updates on insurance company parts procurement, vehicle security and the Ontario College of Trades. Give us your feedback on what is important to you as a repairer. Find out what your trade association is doing for you.
Announcements for dates are being e-mailed to shops in Ontario.
CIIA will be offering the popular Basic Estimating course in London, Burlington, Mississauga, Toronto and Concord this spring. The course helps shop or office employees who need assistance in estimating collision damages on cars and light trucks in Ontario.
Taught by experienced apprenticeship instructor, Jim Miles, this six-night course includes, introduction to estimating, understanding vehicle construction, fundamentals of estimate writing, understanding collision manuals, additional times and collision damage analysis.
This 18-hour course is being offered for two nights a week over three weeks. The course is being held in response to shop inquiries. The course qualifies for I-CAR points.
A course outline and student information sheet is available on request. Students on the waiting list will get priority. Classes are from 6:30 to 9:30 pm. Class size is limited so please call early to avoid disappointment. Class notes are included.
Course fee is $450.00 plus HST for trade association members and $550.00 plus HST for non-members.
Students can register by calling the office at 1-866-309-4272.
Large numbers of interested, motivated young people are enthused about the auto body collision damage repairer trade and sign apprenticeship contracts each year across Canada. With their help, the industry has no skills shortages. BUT, Over 70% of them won't make it to their first time at school!!
The work to date shows that:
I am doing a short study/review with CCDA (Canadian Council Directors of Apprenticeship) members across the country and asking them for their numbers on autobody/collision repair (ABCDR) apprentices. We know how many graduate (CofQ successful completion) each year in each province. We also have data that shows us that once they physically get to the TDA (Training Delivery Agent), chances are good they will stay in the trade.
Different employers perhaps and sometimes frequently, but still in the trade. We are also asking students(through their instructors) in the system, for their motivation and reasons for entering the trade. Were they family, knew someone in the trade, were mentored, had secondary school experience or went to a trade show or skills competition, etc.?
TDAs (usually community colleges) tell us consistently that attrition rates are nominal and they are the same in other trades in motive power (i.e.- AST and Truck and Coach), somewhere in the 15-20% range over the 3-4 years of intake at the school. Some provinces are reporting a zero attrition rate which would identify returning apprentices who took a year off, for instance.
But the provinces show huge loss numbers in these autobody progams.
Ontario for instance shows a total of 314 new apprentice contracts for programs in the year(including pre-apprentice), yet the colleges tell us that only 132 went to class. Ontario's total numbers are much higher because of Centennial's pre-app, and London's pre-app class.( Not included is Toronto's fee-payer class of 82 students.) Alberta's Apprenticeship Branch advises 276 first year signed apprentices in autobody but only 74 went to class -14 in Calgary and 60 in Edmonton.
Alberta charged 43 collision repair shops last year with failure to send new apprentices to school. Autobody was the highest number of charges laid for a sector.
Saskatchewan reports only 12 showed up for school (and the Ministry had to work hard to get that)out of 47 signed. Sask.reports total number of apprentices dropping from 127 to 120.
Manitoba's data and it is very similar to Sask. Manitoba reports 55 signed apprentices with only 14 going to school. Manitoba's number of apprentices, unlike Sask., is going up from 177 last year to 186 this year.
British Columbia's figures are currently not available due to provincial privacy and FOI concerns.
In eastern Canada, we find the same problem. Nova Scotia reports some eighteen registrants for the trade but typically only 3 or 4 show up for class. This year, because the trade has now been deemed "restricted", attendance numbers are up to 9, according to their training college instructor. Nova Scotia reports a total of 66 apprentices.
From the data, the problem issue is becoming much clearer. We do NOT have a skilled trades shortage in ABCDR (Auto body collision damage repairer)- there are lots of motivated, eager, intelligent young people signing up for the autobody trade. Ontario alone shows 141 new signed apprentices from April to September of this year. That's one new autobody apprentice every day-seven days a week.
The problem is that we are losing some 60-70 percent of them prior to school starting. That's why Ontario shows a 80% failure rate for the trade of ABCDR. They are looking at the number of contracts signed against CofQ completion. If they looked at physical TDA entry against completion writing, the numbers would be in the 10-15% range. No one wants to talk about this problem.
As long as we have people who get paid to tell us of skills shortages and civil servants who get remunerated and assessed on the number of new apprentice contracts signed, not on graduation, then these false perceptions will continue. However, the work done by IEC's, youth apprentice groups, www.apprenticesearch.com, CAF, CCDA and co-op programs has worked to maintain the interest in the trade.
So, strangely to some, the answer to the shop-level skills trades shortage is not awareness or importation of skilled folks from abroad, but doing a better job of retention, employer assistance early in the process, getting that young person to school sooner and dealing with employer release.
That is where the focus should be. If that problem could be solved by even 50%, it would mean an additional 192 additional ABCDR technicians per year just in Ontario and Alberta alone and that growth would solve any technician shortage complaints.
We already know why that young person leaves their employer, from the IEC/HRDC/HARA study on skilled trades retention, and the discussion should now be -since everyone has done a proveable good job on attraction, we now need to do a similar job on retention. Putting dollars into awareness programs when we are losing over 70% of the apprentices attracted to the trade, is a massive misuse of funds.
One issue that keeps popping up is that it would appear only 30% of eligible collision repair facilities owners even apply for the $10,000 apprenticeship grant to offset costs. These monies could well be used for retention cost reduction and could keep apprentices better employed.
From a practical viewpoint if a province sees a 80% failure rate in their data,(with autobody being the highest attrition rate in their figures) why should they continue to fund seat purchases?
By: Craig Harris
At least two large insurance companies have introduced procurement programs designed to streamline the vehicle repair process by establishing a mandatory auto parts ordering service organized by the insurer. And more may be coming, with some collision repair representatives reporting that other companies are lining up to test the market.
Intact Financial Corporation and State Farm Insurance have both recently ramped up their programs, which involve hundreds of repair shops in North America. Intact’s parts procurement initiative, which applies to its Rely network of certified repair facilities, was introduced in 2006, but has since expanded to Alberta, Ontario, Quebec and Atlantic Canada.
“We launched this program to facilitate parts selection and ordering,” says Wendy Hillier, vice president of supply chain and procurement at Intact Financial Corporation in Toronto. “Our approach has been to develop an integrated, single portal which provides parts availability and pricing.”
Hillier reports that the 400 repair shops participating in the program “make a decision on what part is most suitable to complete the repair based on three considerations — fit and quality, availability and cost.”
State Farm began a pilot project through its electronic Parts Trader program in the spring of 2012 and now operates in five markets in the United States: Birmingham, Alabama; Charlotte, North Carolina; Chicago, Illinois; Grand Rapids, Michigan; and Tucson, Arizona. Parts Trader — a web-based, collision part sourcing, quoting and ordering system — currently involves 600 of State Farm’s Select Service repair shops.
“State Farm is focused on pursuing initiatives that promote a competitive marketplace and improve repair efficiencies to benefit our customers,” says George Avery, a property and casualty claims consultant for the company. “State Farm repair programs, including electronic parts ordering, are designed to improve value and enhance the customer experience,” Avery says.
State Farm representatives did not comment directly on expansion plans for PartsTrader to the Canadian market. However, John Norris, executive director of Hamilton, Ontario-based Collision Industry Information Assistance (CIIA), an association that shares information on the repair industry, reports that “State Farm Insurance has already sent a letter on PartsTrader parts procurement to our shops. Other insurers have told our shops that they are waiting for the current parts procurement program to mature before jumping into a program.”
These procurement programs have generated negative feedback from several collision shops and auto repair associations. In the U.S., for example, the Auto Body Association of Connecticut released a position statement that notes the following: “The (PartsTrader) endeavour is a wolf in sheep’s clothing. It is bad for repairers, part manufacturers, and most importantly, consumers. The only two enterprises in place to profit — and profit handsomely — are State Farm Insurance and PartsTrader.”
Specifically, repairers argue that the programs reduce profitability, create unnecessary delays and wrest control away from shop owners.
The Automotive Service Association (ASA), the largest trade group representing repair professionals in the U.S., has asked State Farm to provide accurate data to demonstrate how the PartsTrader program benefits collision repairers. Its areas of concern regarding the pilot — as expressed by collision repairers — include efficiency issues, additional administration costs, reductions in shop profits, potential compromises to local repairer-to-supplier relationships, and increasing insurer involvement in the repair process, notes an ASA statement.
In Canada, collision industry representatives say the procurement projects are a bad deal not just for repairers, but for consumers as well.
“Good, efficient collision repair facilities, who already have electronic ordering, now must have duplicate systems, and lose their local vendors as anti-competitiveness weakens their margin,” Norris comments. “Even though those suppliers can sell to the shop for the same price, and sometimes cheaper, the facility on a parts procurement program must order from often more remote suppliers and at lower margins and lower profits only because the insurer is receiving a special fee from the insurance-approved parts supplier,” he adds.
FASTER PRICING, FEWER RETURNS
Insurance companies maintain that the point behind the procurement programs is to get customers’ vehicles back in shape as quickly as possible. And having a centralized ordering process is crucial to achieving this goal, Hillier says.
Intact’s program provides part pricing and availability in less than 30 minutes, she says. That compares to previous processes that generally took as long as eight hours and, in some cases, multiple days to complete.
But it is about more than faster pricing. Hillier also says centralized ordering has reduced the rate of returned parts because of incorrect part selection or quality to less than 10%.
“The program replaces the traditional process of calling multiple parts suppliers with a portal that is integrated with a shop’s estimating system,” notes Hillier. “Thus, this process means that shops can start repairs sooner and return the vehicle back to customers in an efficient and timely manner,” she adds.
When asked about efficiency measurements and cost savings, State Farm’s Avery responds the company is “focused on gathering feedback from repairers and working with PartsTrader to continuously improve the electronic parts ordering process, while repairers maintain their focus on quality, efficiency and price in servicing our shared customers.”
For Norris, one big bone of contention with these programs is that they represent a “simple transfer of parts profit dollars from shops to insurers. We fear that with restricted labour door rates and an eventual 10% handling fee on parts rather than regular profit, shops will regrettably be closing and cannot afford equipment, training nor technician retention in the future,” he says.
Norris points to the experience in other countries, where procurement programs have existed for several years. “As we have seen in other countries, insurance company parts procurement means less professional shops, more shop ‘bottom-feeders,’ less profitability and labour impacts in not attracting technicians/apprentices or failing to retain qualified staff,” he says.
New Zealand is often cited as an example of the parts procurement trend. “We have seen, through the seven years that New Zealand was on this program, a massive reduction in profits as prices lowered (more used and more non-OEM parts) with reduced margins,” Norris reports.
When it comes to claims of efficiency and time-savings for these programs, Norris says he is very skeptical. “The shops that the insurers want on this program already have streamlined ordering programs in place. They already have electronic parts ordering systems and already control returns. The insurer is now on a parts procurement program, set to remove that shop efficiency and replace it with a new level of insurer-contracted ‘efficiency,’” he observes.
From his perspective, there is only one major beneficiary to the new procurement programs. “The only thing streamlined is the money gets to the insurer faster as they get a cut on the parts ordering and take a percentage off the cheque to the shop for their completed repair work,” Norris charges.
In response to this criticism, Intact’s Hillier states: “Our program improves workflows and efficiencies of participating shops and through regular discussions, we work closely with shops in our network to continuously improve our program.”
Some industry watchers have observed that structural auto parts procurement may be just a first step by insurance companies, who are constantly monitoring costs of the supply chain and seeking improved efficiency. Additional avenues could involve paint, among other things.
“Our intent is to focus on structural auto repair parts,” Hillier notes. “However, our platform design has the capability to expand our program to other components that have the potential to drive value and benefits, all while delivering a superior and highly efficient repair service to customers,” she adds.
Norris predicts that insurers will aggressively target other areas of the repair process. “Despite a parts revenue stream shifting from shop owners to insurance companies, none of us expect the revenues to dramatically reduce industry premiums for the average motorist,” he says. “In fact, we expect insurers to look at paint procurement profits next.”
Norris notes this should raise red flags for others involved in the supply chain, and for those expecting that major cost savings will be passed along to consumers. “Eventually this issue becomes a public policy question — if we allow parts procurement programs, should this new income for insurers from shops and from special fees from suppliers be used to reduce Ontario’s vehicle insurance premiums or should it offset their ‘acquisition costs’ of purchasing other companies and brokers?” he asks.
The controversy around parts procurement will likely continue to swirl in North America and create polarized viewpoints among repair professionals and insurance companies. It seems clear, however, that programs, in which insurers have invested significant dollars, are here to stay.
Did you know?
If you were an employed tradesperson in 2012 (including an eligible apprentice mechanic), you may be able to deduct up to $500 of the cost of eligible tools bought to earn your employment income.
An eligible tool is a tool (including associated equipment such as a toolbox) that:
For more details on how to calculate the deduction for tools, go to www.cra.gc.ca/trades
If you are an eligible apprentice mechanic, you may be able to claim an additional tools deduction. To be eligible, you must be registered in a program that leads to a designation as a mechanic licensed to repair self-propelled motorized vehicles, and you have to be employed as an apprentice mechanic. To see if you qualify, go to the Employed apprentice mechanics page at www.cra.gc.ca/trades.
Did you know?
The Government of Canada has extended the Hiring Credit for Small Business (HCSB) for 2012. The 2011 federal budget created the HCSB to create jobs, grow the economy and support small businesses.
If you are self-employed, you may be eligible for the hiring credit for small business. This credit gives small businesses relief from the employer’s share of employment insurance premiums paid in 2012. The credit of up to $1,000 will be automatically credited to your payroll account.
Facts about the HCSB
How do I apply for the credit?
You don’t need to apply for the HCSB. If you are eligible, the CRA will automatically calculate the credit using the EI information from the T4 slips you file—no added paperwork or red tape!
Try the CRA’s online services for businesses
With CRA online services for businesses, you can file, pay, and manage your tax affairs online at your convenience. For more information, go to www.cra.gc.ca/businessonline.
SCRS Releases Video Coverage of International Perspective on Insurer-Mandated Parts Procurement From SEMA
Prosser, Washington, February 4, 2013 - A central topic of collision repair discussion this year has been the advent of the insurer-mandated parts procurement program, of which State Farm's controversial PartsTrader pilot in select cities across the United States has garnered the most visibility to date. While the effects of these programs have yet to fully play out in the U.S., their nature as a mandated intrusion into established business processes may well cause long-term harm to collision repairers and suppliers.
In November of 2012 at the SEMA Show, The Society of Collision Repair Specialists (SCRS) brought together a panel of guests from around the world that have first-hand experience with insurer-mandated parts procurement in their respective countries. The program, part of SCRS' Repairer Driven Education (RDE) curriculum, was titled, "Bidding Wars: A Global View on the Possible Economic Impact of Insurer Involvement in Parts Procurement." The full house of attendees attested to the fact that this is a topic of much concern to the industry.
Panel participants included David Newton-Ross (Australia), publisher of National Collision Repairer and The NZ Collision Repairer magazines and organizer of the Collision Repair Specialists Australia (CRSA) Conference in Australia; Rex Crowther (New Zealand), a former facility owner, current editor/publisher of Panel Talk magazine and former executive chairman of New Zealand Collision Repair Association; and John Norris (Canada) collision chairman of the National Automotive Trades Association of Canada and executive director of Ontario-based Collision Industry Information Assistance, the second-largest trade group in Canada.
Though their markets are thousands of miles away from each other, with their own specific identities, the impact of insurer-mandated parts procurement on each was negative to varying degrees. Watch John Norris' presentations below.Click here for the full press release.
1. Initial Contact with Customer via phone or face to face. We deal with the facts of the loss, IE how did the accident occur, anyone hurt, Insurance Company involved, where the vehicle is now located advise customer to release vehicle to be transported here Approximate Time = 15-30 min
2. Contact Towing Company and get advance charges and instructions to transport vehicle here. Approximate Time = 10 min
3. Fill out Check request and have Bookkeeping cut a C.O.D. check (When applicable – 75% of tow-ins are C.O.D)
Approximate Time = 15 min
4. Contact Customer and inform them when vehicle should arrive. Approximate Time = 10 min
5. When vehicle arrives, Lot Porter escorts Towing Company to locate vehicle in the DBS Lot. Approximate Time = 10 min
6. Depending on the degree of the accident the vehicle may need Jacks Stands, may have toxic spillage, broken glass that must be dealt with. Approximate Time = 10 - 15 min.
7. Repair Order is created and notes are entered documenting the previous steps taken. Approximate time = 15 min
8. Vehicle is then ID’d, images taken and downloaded into the computer the vehicle is then tagged on the windshield as necessary. Approximate time = 10 min
9. Customer is called and notified on the vehicle arrival. Approximate time = 10 min
10. Vehicle is estimated if repairable, then repairs are negotiated with the insurance company, explained to the customer and the ordering of parts/materials and repairs commence. Approximate time = 1-3 hours
11. If the vehicle is deemed a Total Loss, then the customer is then notified (sometimes by us sometimes by the Insurance Company.) We then request the customer to remove all personal belongings. Approximate time = 30 min
12. Customer comes in and retrieves personal belongings and releases vehicle. Approximate time = 15 min
13. We then field several some random calls from the Insurance company and usually the salvage company responsible for removing the vehicle. Accumulated Approximate time = 20 min
14. Salvage Company driver arrives, we collect the Monies owed and escort the Driver to pickup the salvage vehicle, sometimes we need to move certain vehicles to facilitate hookup of the salvage vehicle. Approximate time = 15-30 min
Sample on how to work out cost of living
BASIC COST OF LIVING % CHANGES 2009 ,2010, 2011
1)The statewide average price of a gallon of unleaded gasoline was up 8 cents to $2.75, compared to last week. Pacific Business News Date: Friday, May 29, 2009, 8:35am HST
2) Posted on: Thursday, January 7, 2010 Hawaii gasoline prices rise in 2010 Advertiser Staff
The statewide average for a gallon of regular gasoline rose 2 cents in the first week of the new year to $3.32, according to weekly figures released today by AAA Hawaii.
Hawaii’s February 2011 price for regular gasoline averaged $3.746, which was about $0.569 or 17.9% higher than the national average for the same month. Hawaii’s February 2011 price for regular gasoline increased $0.052 or 1.4% from January 2011.
Hawaii gas prices drop 8 cents a gallon, still highest in U.S. Pacific Business NewsDate: Thursday, June 21, 2012, 1:17pm HSTGas prices in Hawaii dropped by an average of 8 cents a gallon this week, according to AAA Hawaii. Hawaii gas prices dropped this week for the third week, with the statewide average price of a gallon of regular unleaded falling 8 cents to $4.37, according to AAA Hawaii’s Weekend Gas Watch
1) The Percentage increase in gas prices in Hawaii from 2009 to 2010: was a 21% increase
2) The Percentage increase in gas prices in Hawaii from 2010 to 2011 was a 13% increase.
3) The percentage increase in gas prices in Hawaii from 2011 to 2012 was 17 % increase
Data from the Health Insurance Branch Administrator Loyd Lynn State of Hawaii. Consumer Affairs
Average cost of health Insurance per Individual per year:
2009 = $ 279.00
2010 = $ 294.00
2011 = $ $373.00
1) The percentage increase from 2009-2010 for health insurance was a 5 % increase.
2) The percentage increase from 2010- 2011 for health insurance was a 27% increase.
Information gathered from the Board of Water supply supervisor:
The average water bill per resident in Hawaii:
2008= 2.46 per gallon of water
2009 = $2.66 per gallon of water (average use is 13,000 gallons)
2010= $2.79 per gallon of water
2011 = $2.79 per gallon of water
2012= 3.06 per gallon of water
1)The percent increase in water services from 2008 to 2009 was = 9% increase
2)The percent increase in water service from 2009 to 2010 was = 5% increase.
3)The percent increase in water service from 2010 to 2011 was = 0 % increase.
4)The percent increase in water service from 2011 to 2012 was = 10% increase.
4) COST OF ELECTRICITY
www.rmiia.org/auto/steering...auto.../Cost_of_Auto_Insurance.asp Consumer insurance information about the cost of auto insurance. ... The average auto insurance expenditure nationwide was $785 in 2009, compared to $832 in 2005. Source: National Association of ... Hawaii, $786, 18, $816, 18, $837, 16 ...
Looking at the car insurance prices alone, Hawaii ranked 22nd most affordable with a median year policy price of $1186.00 which is $116.62 less than the national average. Pacific Business NewsDate: Thursday, June 17, 2010, 11:57am HST
What is the average cost of Car Insurance in Hawaii?
Most Hawaii drivers do opt for coverage that goes above and beyond the minimum insurance requirements. Hawaii residents pay approximately $1,153 on average in yearly auto insurance premiums as of 2011. Unfortunately, these rates have gone up in recent years. In 2010, for example, the average was $1,120. Despite this increase in car insurance rates, it is still possible for Hawaii drivers to find very affordable car insurance rates with a little bit of work comparing auto insurance companies. www.directautoinsurance.com/hawaii-auto-insurance/Hawaii residents pay approximately $1153 on average in yearly auto insurancepremiums as of 2011. Unfortunately, these rates have gone up in recent years.
Hawaii Ranked 3rd Cheapest for Car Insurance
August 2, 2012An online car insurance shopping site ranks Hawaii as having the third cheapest rates in the nation.According to CarInsuranceQuotes.com, motorists in the Aloha State pay a median annual car insurance policy cost of $1,244. That’s 1.634 percent of household income.
The cheapest on the list was in Massachusetts, where policyholders pay just 1.434 percent of household income. Michigan tops the list, where 8 percent of median household income goes toward car insurance, or a median annual price of more than $4,000.The Honolulu Star-Advertiser reported Tuesday state of Hawaii Insurance Commissioner Gordon Ito attributes the positive ranking to several factors including a reduction in accidents and a highly competitive motor vehicle insurance market in Hawaii.Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
1) The cost of percentage change for vehicle insurance in Hawaii from 2009-2010 increased by 34%
2) The cost of percentage of change for vehicle insurance in Hawaii from 2010-2011 decreased by 3%
3) The cost of percentage of change for vehicle insurance in Hawaii from 2011-2012 increased by 7%
Last Wednesday night at about 7:00 pm, Jack Martino Sr., who was one of the original founders of Martino Bros. Collision CSN in Toronto, passed silently, with his family present.
Profit Provision Review for Automobile Insurance
The Financial Services Commission of Ontario (FSCO) has selected two consultants (Dr. F. Lazar and Dr. E. Prisman of York University) to conduct a profit provision review for automobile insurance. The review will examine the rate of return on equity (ROE) for insurers used by FSCO in approving auto insurance rates.
FSCO considers several factors in reviewing the reasonableness of rates proposed by insurers. ROE is one of them. Currently, FSCO uses an ROE benchmark of 12 per cent.
In his 2011 Annual Report, the Auditor General of Ontario discussed the changed economic environment since 1996 when the ROE benchmark was last updated and recommended that it be reviewed. The Ontario Government endorsed the recommendation in the 2012 Ontario Budget.
The profit provision review will include consultation with stakeholders and we expect that the work will be completed in 2013.
Please refer to FSCO's Automobile Rate Review Process and filing guidelines.
Richard TillmannSenior Manager
Corporate Policy and Public Affairs
Financial Services Commission of Ontario
Intact Rely Program - Scorecard Initiative
We are writing to begin the process of implementing our KPI Performance Measurement tool that Intact Financial Corporation (Intact) will be using to monitor the performance of shops participating in the Intact Rely Program. This tool is specifically referred to in the Rely Network Service Agreement Appendices Minimum Service Levels (section 3.2) and Preferred Vendors (section 5.2). The KPI Measurement tool is being called the Intact Rely Network Performance Scorecard and it will collect sales and date related repair order data (for Intact and Intact related companies ONLY) from your management software (e.g. sales amounts, sales hours and dates). Intact will NOT be collecting any cost, profit or accounting data. As a supplier in the Intact Rely Program, you will have access to this web-based tool to see your information in the same format as your Intact Rely Manager. This will assist you in regularly monitoring your performance and to prepare you for regular meetings where we will review the KPIs together and create action plans where needed.
We will begin implementing the Intact Scorecard in the coming weeks. Our supplier for the Intact Scorecard is ClaimsCorp Inc. We will notify you before they will be contacting you to initiate the implementation of the Intact Scorecard at your location(s).
If you have any questions, please contact me. Thank you for your continued efforts to strengthen the value of the Intact Rely Network and to make our customers’ collision repair experience a great one!
Ontario Claims Manager
(905) 858-1070 ext. 45640
In testimony to a Standing Ontario Committee, Mr Philip Howell, CEO of the Financial Services Commission of Ontario and Mr. Tom Golfetto, Executive Director of the auto insurance division of FSCO, laid out some dramatic insurance company cost decreases between 2010 and 2011. They testified that: