The Insurance Brokers Association of Alberta has taken an official stance on the use of telematics, as usage-based insurance is now available via the broker channel in the province.
The IBAA ratified five new positions on how telematics must be governed at their May AGM. Rikki McBride, chief operating officer at IBAA, says the goal is to ensure consumers’ best interests remain at the forefront of auto data collection.
“Our new positions are that the association feels that no loss should be denied as a result of the collection and analysis of UBI and telematics data, we believe that all UBI and telematics data should be owned by the consumers, and be accessible and portable,” she says.
“As an association we felt this was very important, as this is fairly new for the industry, that the technology that’s out there, that we have a position on it, and as always we’re advocates for the consumer.”
The five positions encompass:
- No loss should be denied as a result of the collection and analysis of UBI data
- Telematics data should be owned by consumers
- Data should be accessible and portable
- That brokers can access the data with the consent of the consumer
- Participation in telematics must be voluntary
McBride adds that brokers pay an important role in educating clients on how telematics work, the information collected, as well as the potential downside of having their driving habits monitored. “I think it’s important for brokers to communicate to their clients what is being used to develop their specific rating and premiums and to be able to advise them appropriately as to what type of products they should be looking at purchasing,” she says.
“Telematics may not be the best fit for everyone, but if brokers have the information and can appropriately advise their clients based on that information and their appropriate situation.”
Telematics to be offered by broker channel for first time in Alberta