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Usage-based insurance take-up in Quebec not a real success to date


October 24, 2014   by Angela Stelmakowich, Editor


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OTTAWA – Quebec is not being as aggressive as Ontario with regard to telematics since the take-up for auto usage-based insurance (UBI) products has been lackluster to date, Guy Parent, general manager of Le Regroupement des cabinets de courtage d’assurances du Québec (RCCAQ), suggested Wednesday in Ottawa.

“Just do the math,” Parent said during the Insurance Brokers Association of Ontario’s 94th Annual Convention in Ottawa. Pointing out that the average car insurance in Quebec is about $522 – well below the approximately $1,500 in Ontario – telematics is “not a real success right now” in Quebec.

There are currently three players offering UBI products in the province: Desjardins General Insurance Group, Intact Financial and one direct insurer targeting youth (Industrial Alliance Home and Auto Insurance), he noted.

Parent reported about 55,000 people have applied for the Desjardins offering, 17,000 for Intact’s and about 8,000 for the youth program. For a population of about 8 million, “the success is not there,” he told attendees.

RCCAQ’s approach has been to keep brokers informed, he said, adding that the association supports telematics-related principles released by the Financial Services Commission of Ontario (FSCO) and has brought those to the attention of the Quebec financial regulator, the Autorité des marchés financiers (AMF).

In a statement last May, RCCAQ reported it will continue to push for AMF to establish a legal framework governing the ownership and use of telematics data.

A bulletin last October from FSCO – which details considerations for insurers planning to offer UBI programs – states information gathered through telematics technology, or other devices, for UBI pricing (UBIP) should be considered “personal information” as defined by Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA).

“At this point in time, UBIP programs, including program-provided devices and applications, should collect and use UBIP data solely for discount-setting purposes, and not to decline, cancel or refuse to renew risks or to confirm rating criteria currently uses,” the bulletin states. “Additionally, it would be inappropriate for insurers to use UBIP data for claims-related purposes at this time.”

Among other things, the bulletin spells out issues such as UBI programs being voluntary, receiving consent, ensuring data collection meets privacy legislation and how long personal information and data can be kept.


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