The Centre for Study of Insurance Operations (CSIO) has released a legal advisory report that backs up a plan to have eSlips as auto insurance verification. The broker channel has championed the introduction of eSlips, electronic proof of auto insurance that would replace the existing physical pink slips currently in use.
Fasken Martineau LLP commissioned the report, which was entitled “eSlips: E-Delivery of Motor Vehicle Insurance Liability Cards,” and shows the legislative process required to have pink slips in place, while also studying markets that currently use eSlips and how similar changes would work in Canada.
Electronic proof of auto insurance, or eSlips, would eliminate the need for traditional paper pink slips, representing a significant step forward in workflow efficiency for the insurance industry and meeting the expectations of today's evolving consumer,” CSIO said on its website.
The benefits of eSlips over traditional pink paper are many, mostly concerning saving cost and resources. The cost of electronically emailing an eSlip to a policyholder as opposed to printing and physically mailing a pink slip copy is much lower. An eSlip would also mean policyholders cannot lose their data and that slips can be updates easily for any reason. CSIO says:
Insurance legislation in Canada still requires, in many jurisdictions, that insurers print and mail a paper pink slip as proof of auto insurance and that consumers use pink slips as proof of coverage. However, as digital technology has evolved, so have consumer expectations. Updated legislation to permit eSlips would enable:
- insurers and brokers to send proof of auto insurance electronically, reducing the costs of printing and mailing paper copies
- consumers to use electronic devices to display proof of auto insurance
The introduction of eSlips would also stop fraud, which is common in some Canadian markets where crime rings can duplicate pink slip papers.
At the moment, pink slips are required in Alberta, Ontario, the Maritimes, Nunavut, Yukon and Northwest Territories.
“Facilitating change to this more than 50-year-old regime lies largely with provincial regulators, without the need for statutory amendment,” the report said. “The relevant legislation in each province and territory using the pink card does not itself expressly require that the insurance card be in paper form, and the legislation defers to the regulator to set the form of the card. In our view, provincial and territorial insurance regulators could therefore permit the use of electronic images of insurance cards to suffice.”