IMC 2013 INSURANCE COST BENEFITS OF MUTUAL AID AGREEMENTS Agenda - - PDF document

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Oct 19, 2022 21 likes •117 views

IMC 2013 INSURANCE COST BENEFITS OF MUTUAL AID AGREEMENTS Agenda History of Property Insurance Fire Underwriters Survey (FUS) History of FUS The Survey Mutual Aid Agreements Fire Insurance Grading Systems and Index

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INSURANCE COST BENEFITS OF MUTUAL AID AGREEMENTS

Agenda

History of Property Insurance
Fire Underwriters Survey (FUS)
History of FUS
The Survey
Mutual Aid Agreements
Fire Insurance Grading Systems and Index
Saskatchewan Participation
Impact on Property Insurance Rates and Premiums
Conclusion

History of Property Insurance

First known fire insurance developed in London,

England in 1666

Insurance rates offered at 2.5% of value for brick

buildings, 5% for wood structures

Insurance companies developed their own fire

brigades

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History of Property Insurance (continued)

In North America, first fire insurance company-

The Philadelphia Contributorship

Founded in 1752 by…

In Canada…

1868 Government of Canada passed the

Insurance Company Act

1883 insurance companies created the

Canadian Fire Underwriters Association

First attempt to categorize municipalities by

building construction and fire fighting equipment

Great Toronto Fire, 1904 Early Toronto Fire Brigade

Today…

FUS is administered by SCM Risk Services
FUS provides statistical information to insurers,

advice to municipalities on improvements etc.

Field surveys are used to establish the Public

Fire Protection Classification (PFPC) for municipalities and businesses and the Dwelling Protection Grade (DPG) for private dwellings

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The Survey… Measures the ability of a community to prevent and control major fires and considers the following:

– Available fire fighting force (Paid vs. Volunteer, number of personnel etc); – Fire fighting Apparatus (Type, Age, etc); – Water Supplies; – Superior Tanker Shuttle Operations – Communications – Mutual Aid Agreements can significantly improve grade

Superior Tanker Shuttle Operations (STSS)-

Support fire fighting operations where hydrant

service is unavailable or flow is limited;

Demonstrate ability to deliver a minimum

amount of water, within a minimum period of time, for a specific length of time;

STSS Accreditation can improve fire protection

and insurance rating Mutual Aid Agreements-Considerations

Area covered must be clearly established and defined;
Agreement must be provided a response to a call for

assistance;

Requires planning to ensure that it will work as required;
Agreement is the authority for an agency to provide fire

fighting, fire prevention or emergency services, or the use

f fire fighting or other emergency;
Response equipment or facilities on any terms that may

be agreed on;

Setting and payment of charges.

*Summarized from Fire Protection and Mutual Aid Area Agreement Guidelines, August, 2011-Ministry of Corrections, Public Safety, and Policing.

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Mutual Aid Agreements-Considerations

Fees to be paid by the municipality receiving fire

protection;

Methodology for fees ;
Period of the agreement;
Arbitration provisions to settle disputes;
Exact service descriptions and response times;
Legal description and civic address of the area the

agreement applies to;

Priorities in the event of simultaneous calls;
Liability for equipment, actions etc.

*Summarized from Fire Protection and Mutual Aid Area Agreement Guidelines, August, 2011-Ministry of Corrections, Public Safety, and Policing.

Saskatchewan Participation- Saskatchewan Participation-

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Saskatchewan Participation- Saskatchewan Participation- Saskatchewan Participation-

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Saskatchewan Participation- How does all this affect insurance rates? For homeowners…an example…

2100 square foot home
3 bedrooms/3 bathrooms
Replacement Cost $375,000

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Average premium of 4 major insurers Protected Area (1): $1350 Semi-Protected Area (2): $2208 (64% more than 1) Unprotected Area (3): $4188 (210% more than 1)

*Source-Fire Underwriters Survey

For Commercial Business…an example…

Masonry building built 1990, light commercial
2000 square feet
Alarms and fire extinguishers
Replacement Cost $300,000

Average premium of 4 major insurers Protected Area (1): $748 Semi-Protected Area (2): $1235 (65% more than 1) Unprotected Area (3): $2788 (272% more than 1)