TICO wishes to inform all stakeholders that, following a competitive process, Deloitte was selected to complete an actuary analysis and financial assessment of the industry financed Compensation Fund (“Fund”). The purpose of this study was to determine the adequacy of the Fund under various scenarios of expected losses, and to assess the sustainability of the Fund into the future.

To access to the complete Deloitte Report click here

Highlights of this report include:

  • Current funding arrangements combined with expected losses are projected to deplete the Fund over the next 10-15 years;
  • Significant risk exists with the dependency on charge-back policies of credit card processors, leaving the Fund and consumers at risk if these policies change in the future;
  • The optimal approach to achieve the desired target Fund levels is a new funding model that includes a variable consumer protection fee;
  • A target Fund level of $50 million and the introduction of a comprehensive reinsurance layer to protect consumers from catastrophic losses.

This study contains a detailed description of methodology, analysis and observations. The findings of this report were integral to the recommendations made by TICO during the comprehensive review of the Travel Industry Act, 2002 and Ontario Regulation 26/05.


Richard Smart
President & CEO