Insurance Telematics

Regulatory decision on UBI may come by the end of this year at Alberta

Published: May 30, 2014

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The Office of the Superintendent of Insurance in Alberta will make its decision on the approval of usage based auto insurance in that province by the end of this year.  The regulator is deciding which rating factors – such as speed, acceleration, braking, turning, time of day, location (GPS), distance driven and mileage – will be approved and which will be prohibited for UBI. However, it is stressing that privacy must be top of mind for insurers who want to launch programs.

“We don’t think of UBI as a rating factor, we think of it as a bundle of separate rating factors that will be pulled together to form the UBI program,” Balfour said. He also mentioned that the office has received several applications for UBI programs and is in talks with insurers and other telematics stakeholders at Insurance Telematics Canada conference in Toronto Wednesday.

When conducting its analysis, the superintendent’s office will be using Alberta’s auto insurance rating factors framework, published last year.

The superintendent’s office will also expect insurers to work with the Office of the Information and Privacy Commissioner to ensure privacy legislation is respected. For example, it will require insurers to work with the privacy commissioner by submitting a privacy impact statement, addressing questions and concerns they may have, prior to implementing their UBI program. Insurers also may be expected to have informed consent documentation reviewed and approved by the privacy commissioner before launching their telematics programs. The superintendent’s office is currently researching best practices for informed consent and what that would mean in the UBI context, Balfour noted.

Overall, the office is also continuing to look at UBI in Ontario, Quebec, the United States and Europe for best practices and is expecting to make a decision by the end of the year.

Source: Canadian Underwriter

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