When it comes to the next wave of insurtech in auto, insurance companies and regulators are just trying to figure it all out according to Patrick Vice, Insurance-Canada’s partner and director of products and services.
Vice highlighted the auto insurance reforms in Ontario as an example of cautious embrace by regulators who, like insurers, are trying to wrap their heads around realms not everyone understands.
“Looking at some of the IoT stuff, some of the telematics and using that to gather information: I think they’re kind of like us, poking around and asking ‘What does this all mean?’ and ‘It sounds like it’s pretty good so let’s try some of it,’” Vice said.
Ontario has started reforming its auto insurance industry, one that offers the most expensive rates in the country despite having some of the safest roads.
One idea already put into the pipeline is the digitization of proof-of-insurance, while bringing in other technology-based solutions is part of the Ontario government’s price-reduction plan. According to Vice, these are further examples of regulators slowly dipping their toes into the insurtech waters.
“In a couple of instances there have been actions by the regulators, actions by the politicians to, if not embrace, then at least understand,” he said.
What is the future of Canadian auto insurance?
“The customers are more ready than the insurers.”