April 28, 2017 by Canadian Underwriter
The Insurance Brokers Association of Ontario (IBAO) has welcomed the provincial government’s budget pledge to give drivers the option of electronic proof of insurance, a move IBAO suggests will help make insurance more affordable for consumers.
The advance is part of Thursday’s release of the 2017 Ontario Budget. “This year, drivers will benefit from the option of using electronic proof of insurance,” states Budget 2017, Chapter 11: Helping You and Your Family.
Distributing documents electronically, including proof of insurance and other documents such as policy renewals will enhance consumer convenience and result in savings for insurance companies, the document suggests.
The government move “will allow drivers to confirm their proof of insurance through their mobile device, instead of the current paper ‘pink slips’ issued by insurance companies. When using this option, drivers will no longer need to replace a paper copy of their proof of insurance each time they renew their auto insurance policies,” it explains.
“To ensure that these savings are passed along to the consumer, the government will require that insurers offer a discount to policyholders who choose to receive documents electronically,” the document adds.
IBAO CEO Colin Simpson says the association “is very excited to be able to work with our insurance company partners to ensure the efficient delivery of electronic documents to consumers through its members.”
While the industry is making great strides with regard to technological progress, “the advent of electronic proof of insurance should be the catalyst for all participants in the market to come together and to deliver efficiencies and savings to consumers through the broker,” Simpson comments.
Jeff Purdy, senior vice president of international operations for Applied Systems, also welcomes “Premier Wynne’s support of the use of technology for brokers to provide consumers with omni-channel access to their insurance information.”
Applied Systems, a global provider of cloud-based software that powers the business of insurance, looks “forward to working with the IBAO and our insurance company partners in the adoption of technology to deliver electronic proofs of insurance and other insurance documentation,” Purdy says in the IBAO statement.
Calling this a real opportunity for the insurance industry to come together to deliver real consumer value in a time of change, IBAO president Traci Boland adds “we look forward to working with all insurers and technology vendors to make this happen.”