Conference Highlights Impacts of Automotive Technology on Insurance

The impact of new automotive technology has extended well beyond drivers, manufacturers and parts suppliers. Canadian insurers are looking at a future that includes potentially serious disruption as well as new opportunities.  To bring some clarity, experts from the transportation, governmental, and insurance sectors will be analyzing and debating implications of a new mobility environment at the 2016 Insurance-Canada.ca Technology Conference (ICTC2016) on February 29, 2016 in Toronto.

Until just a few years ago, the possibility of ‘self-driving cars’ hitting the highways in the foreseeable future seemed remote.  Catherine Kargas, Vice President at the Quebec consultancy, MARCON and chair of Electric Mobility Canada, remembers doing a presentation on the arrival of driverless vehicles to a senior executive insurance audience in 2013.

“My presentation was interrupted twice from the floor when I suggested that we would see introduction of these cars within five years,” Kargas said in a recent interview.  “These people were angry that I was presenting what they thought was pure fiction.  But look at where we are three short years later.”

According to Kargas timelines for partial and fully autonomous technology running on our roads are shortening.  And, as these vehicles improve safety and reduce accidents, the pricing and structure of insurance will change.  However, new risks and service requirements could emerge for insurers that are prepared.

“Forward-looking insurers are already getting involved in trials, pilots and other alliances with vehicular technology players.” Kargas said. “These experiences will help them better prepare for the needs of tomorrow’s mobility.”

Kargas has put together a panel for the ICTC2016 that includes representatives from two major insurers – Ben Isotta-Riches, CIO at Aviva Canada and Karim Hirji, Senior Vice President, International & Ventures, Intact Financial Corporation. Both of these organizations are developing new coverages that relate to changes in how consumers use various modes of transportation.

In addition, Kargas is bringing in a supplier of alternative mobility services – Alifya Curtin, General Counsel at car2go.  Rounding out the panel will be a senior regulator, Claudio DeRose, Director, Safety Policy & Education Branch, Ontario Ministry of Transportation.

According to Kargas, self-driving cars are only one aspect of a trend away from silos of transportation services, to a wider approach, referred to as ‘Mobility as a Service (MaaS).”

“Mobility has already started to change, particularly in urban settings,” Kargas said.  “New companies are developing a variety of mobility services – like car sharing, ride sharing, peer to peer sharing – intended to help move users from vehicle ownership to usership.”

Kargas notes these schemes are already in process in cities like Helsinki, Oslo and Paris.

“The arrival of new forms of mobility present opportunities for insurers to deliver products that will provide coverage to a growing market,” Kargas said.  “The speed with which new mobility services arrive on the market will encourage insurers and regulators to be more agile,” Kargas added.

Further information and registration details for the 2016 Insurance-Canada.ca Technology Conference can be found at http://www.insurance-canada.ca/ictc.