By: Luke Jones, Published on May 2, 2016 11:42 AM, Last Update on May 3, 2016 11:22 AM
Telematics are considered to be part of the future of the auto insurance industry, but Canadian adoption of the technology is moving slowly. The Financial Services Commission of Ontario (FSCO) has said that it still does not allow telematics for claims management and so far that is an indefinite decision. The commission has not said when or if it will ever accept telematics devices as a means to calculating auto insurance.
Blair Currie, vice president of Canadian business development for Intelligent Mechatronic Systems Inc. (IMS) said in an industry meeting in Toronto last week.
“FSCO, at this point in time, doesn’t allow telematics data to be used for claims management, and I think that’s just a line in the sand,” he said. “They put that line in the sand because they didn’t want to have denials of policy, denials of coverage because of telematics data,” he said of FSCO.
In other countries where telematics have been adopted, drivers willing to be monitored when they drive see their auto insurance premiums decline and become more affordable. One of the more interest of telematics is that the tech seems to help in reducing accidents and improving driving for individuals. It is admittedly too early to predict the long term viability of the technology, but the signs are encouraging.
Insurance companies in Canada have often expressed the need to use telematics technology, but Currie said providers need to make sure they are in a position to use the tech for claims management.
For example, if it is clear that serious accidents are more likely to occur at certain times of the day, “do you have a claims management system that captures that amount of time? Can you do a correlation between the data captured and an accident occurring in that period of time?”