Facility Association ensures the availability of automobile insurance to owners, lessees and licensed drivers of motor vehicles who are eligible.
To deliver on our Purpose through the efficient administration of automobile insurance residual market mechanisms; and by providing valued information to our members. Facility Association strives to enhance market stability through minimizing our market presence and impact, in an effort to provide consumers with the benefits of a healthy and competitive standard insurance market.
Facility Association is recognized as an essential component of the Canadian P&C insurance industry, supporting Canadians and the Canadian economy through its highly efficient and effective administration of automobile insurance residual markets and data governance; Facility Association is sought out for its objective opinion on residual markets and related issues.
Who we are
Facility Association is an unincorporated non-profit association of insurers. FA operates in Yukon, Nunavut, Northwest Territories, Alberta, Ontario, Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador. Every insurer licensed to write automobile liability insurance in these jurisdictions is a member of Facility Association. The affairs and business of FA is managed and controlled by a Board of Directors with authority Canada-wide. The President and CEO is responsible for the day-to-day operations of the organization and management of staff.
is the legislative framework, under which FA and all member companies must abide and operate.
What we do
Facility Association guarantees the availability of automobile insurance through the Residual Market Mechanism and through Risk Sharing Pools as well.
The Residual Market Mechanism (FARM) is an arrangement between Facility Association and select member automobile insurance companies who act as "Servicing Carriers.” Servicing Carriers issue and endorse policies, receive premiums and adjust claims on behalf of the member companies of Facility Association. All policies written through the FARM are subject to the rules, rates and classification of the Facility Association. All Rules and Rates require regulatory approval for all jurisdictions the Residual Market serves.
Risk Sharing Pools operate in Ontario, Alberta, New Brunswick, Nova Scotia and Newfoundland and Labrador and only apply to private passenger vehicles. The Risk Sharing Pools are administered by the Facility Association and accept risks underwritten by members at their own approved premium levels or at a regulated maximum level where applicable. Insurers issue policies on their own book, and then have the option of keeping such business or transferring it to the Risk Sharing Pool where eligible. Each Risk Sharing Pool has its own eligibility guidelines for risk submission.
Facility Association also administers the Uninsured Automobile Funds in New Brunswick, Newfoundland and Labrador, Prince Edward Island and Nova Scotia. Individuals who may claim from the Fund include those who cannot obtain satisfaction for damages under a contract of automobile insurance; those who do not have other insurance; and those who do have other insurance, but it is inadequate. The respective provincial Insurance Acts govern payment of these claims. The Facility Association monitors the investigation, defense and final settlement of these claims through the assistance of designated law firms and an insurance company.
Facility Association is responsible for the provision and administration of the Underwriting Information Plan (UIP). The UIP enables the identification, collection and transformation of policy and claims data from members into information to assist the valid and appropriate risk assessment and underwriting by members. Every member is required to participate in the UIP and to report the data designates as UIP Data to or in accordance with the direction of the Facility Association.