Manager's Report 2010
PEI Mutual has just completed 125 years of business on PEI. This past year was an exciting time for the employees of PEI Mutual. Throughout the year, we spearheaded a number projects to celebrate our history. A TV commercial was produced on PEI which featured PEI Mutual employees and their families as actors. We also advertised in local papers and built a parade float which was entered in most of the PEI parades throughout the summer. Mutual rebate cheques representing 10% of policyholders' premium were mailed to all our policyholders in March, 2010 totaling $1,473,000. Overall, it was a busy fun-filled year for our employees and I thank them for their leadership and participation in our festivities.
Weather incidents and oil spills resulted in a large increase in claim activity for 2010. The number of losses increased by 43% over 2009 representing an increase of $1,500,000 in claim payouts.
Claims resulting from wind damage represented 16% of our total claim payout and 40% of our number of claims in 2010. This is more than double our average in the past 10 years.
Since 2001, we have paid almost one million dollars annually to clean up oil spills. Oil spills represent 14% of our total claim payout for all claims in the past 10 years. Outdoor oil installations appear to be failing faster that expected. A few facts about our experience:
- Provincial regulations require that all oil tank installations be tagged. Outdoor steel installations appear to be deteriorating and leaking prior to their present expiry date on the provincial tag. Our experience is that the single wall steel tanks, that are tagged for 15 years, appear to be failing between 6-10 years.
- Outdoor oil installations represent 34% of PEI Mutual's total oil installations on our books but are the cause of 80% of our oil losses.
Some recommendations on oil installations:
- An oil furnace and tank should be professionally inspected and serviced yearly, with a filter change and removal of sludge and water from the bottom of the tank.
- It is recommended that oil tanks be installed in the basement of a home when conditions permit. This protects the tanks from our harsh weather elements and will result in a quicker response to an oil leak because the homeowners will notice the leak prior to any significant loss of oil. Oil spills from outside oil tanks are not usually detected until all the oil has leaked and the tank is empty.
Over the past 15 years water damage claims have increased in both number and dollars. We attribute this to an increase in people finishing their basements with higher quality products.
I am pleased to welcome Kendall Docherty as a new service agent. He lives in Hazelbrook with his wife Denise and young family. Kendall is well known throughout PEI for his musical talents. He makes an excellent addition to the PEI Mutual team.
I am pleased to advise that PEI Mutual was once again recognized in 2010 by Progress Corp as a "Top 101 Company in Atlantic Canada". PEI Mutual has received this award for each of the past thirteen years. In 2010, there were three other companies in PEI that received this award.
PEI Mutual is an Island Company which contributes greatly to our Island economy through contributions to local charities and organizations and through the employment of 35 full time permanent staff who contribute to and volunteer in their home community.
"Providing excellent service to our policyholders" is our key to success. I thank our team of dedicated employees and directors for their hard work.
Thank you for choosing PEI Mutual as your insurance provider.