Canadian Underwriter

What happens to your clients’ outdated pink slips?

January 29, 2018   by Jason Contant

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When Nova Scotia became the first jurisdiction in Canada to allow electronic proof of automobile insurance (EPAI), it opened up a whole new world for insurers to offer the digitized pink slips to their consumers.

Nova Scotia’s move “will be a major turning point for consumers who appreciate having digital options and will quickly expect it as a table stake of doing business with insurance,” Ken Sedgewick, Sharp Mobile’s director of sales, said in a press release Friday. “The days of customers sorting through a bunch of outdated pink slips in the glove compartment are numbered.”

But is it the beginning of a new era in which outdated pink slips are now located on your mobile phone?

EPAI providers —  including brokers, insurers, the industry technology standards body such as the Centre for the Study of Insurance Operations (CSIO), and third party vendors like Sharp Mobile, Keal Technology, and Applied Systems, among others — are already positioning their solutions as the most desirable for consumers.

One of the marketing battlegrounds is that EPAI makes it possible for consumers to add or delete vehicles throughout a policy term, which was uncontrollable for paper-based pink cards – the driver would have the pink card for the length of the policy term.

“People will buy insurance, get the pink card and cancel the policy, but keep the pink card as ‘proof of insurance,’” Ken Sedgewick, Sharp Mobile’s director of sales, told Canadian Underwriter. “With digital, it’s important that you’re only showing valid coverage.”

Sharp Mobile claims to be the first to develop the technology for pink cards to be viewed on a mobile device, with one feature of the system being that it works in conjunction with policy data. Electronic slips appear and disappear based on policy coverage, meaning that the consumer is never responsible for removing old eSlips [an electronic slip showing proof of insurance] from a mobile wallet, thereby eliminating a source of confusion.

“Because we get policy coverage updates all the time, if a vehicle is deleted, we receive that data and remove that pink card,” Sedgewick said.

He contrasts this with EPAI solutions in which the electronic pink card is downloaded into a driver’s digital wallet. Under such a solution, he said, it’s possible that a customer could receive an EPAI on policy renewal, delete that vehicle, and then get a new vehicle needing a new EPAI. The onus would be on the consumer to delete the old EPAI from their digital wallets, just like consumers would have to delete old rewards cards from their wallets.

“That’s where confusion to the customer could arise, with multiple EPAI’s in the wallet over the years for old vehicles [and] expired policies,” Sedgewick said.

But the issue raised by Sharp is more illusory than real, says CSIO, which has been collaborating with insurers and brokers to create an EPAI solution using mobile wallet technology. CSIO is expected to roll out its solution very soon.

Ahmer Gulzar, CSIO’s senior manager of technology, strategy and architecture, told Canadian Underwriter that “digital wallets make it very simple to remove any card stored there, regardless of whether it is a credit card, debit card, boarding pass, event ticket, or eSlip.”

He said users will only have to view the back of the electronic pink slip on their phone and tap a button to remove or delete it. “This is no different from current processes in the paper world, where drivers must remember to replace their expired liability card when a new one arrives in the mail,” he said. “CSIO’s eDelivery solution enables drivers to complete the switch in a single step on their smartphone instead of searching through their glove compartment.”

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4 Comments » for What happens to your clients’ outdated pink slips?
  1. Dave Thomas says:

    Nobody gives a hoot about electronic pink slips. As a broker I have been able to distribute pink slips electronically for a long time thru my bms. I don’t find that a lot of my customers want this though. No idea why CSIO spent money on this. We have bigger issues to find answers to. Brokers will pick who they want to work with on the customer service stuff. But that’s bigger then whatever CSIO is mucking about with.

  2. Jim Thomson says:

    What happens when I borrow someone vehicle what do I do for a pink slip.
    Do I need tp borrow their cell phone?

    • Hi Jim, eSlips/ePinkslips (Electronic Pink Slips) can be shared via text or email through the digital wallet so you would not have to lend someone your phone. They would receive

  3. Eldon Gaw, Ottawa, Canada says:

    The time is coming when the choice of everything paper will be available in electronic solutions. It may even become the ONLY way things are available in years to come. Case in point is a very large number of people and companies now use electronic solutions to do things we would never have thought about a few years back like completing tax submissions, sending money across the street or around the world, along with many other already “done deals”. How many people now pay electronically at a check out versus with actual paper or coins? And insurance is still far behind those institutions using the digital solutions. What drives these new formats is of course at least two things. Customer demands and ROI. Yes of course digital filing is the way of the world today for almost everyone, and so it should be. EPAI’s are just one very small step in that direction, and yes, you may have to borrow your friends cell phone until they develop a solution to that particular issue, along with all the other issues we face in our insurance profession as the days, months and years progress, the lifestyles of many become the driving force and our way of living becomes changed from coal oil lamps to LED lighting, and beyond. Shrek said it all years ago.

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