One Ontario insurer is offering a telematics solution in co-operation with technology developed by a Canadian-based company.
The Co-operators’ en-route Auto Program promises more customized auto insurance and lower premiums for safe drivers, based on usage-based insurance technology developed by Intelligent Mechatronic Systems.
“The en-route Auto Program is as customized as auto insurance gets,” says Kathy Bardswick, president and CEO of The Co-operators. “It’s an innovative program that not only allows your premiums to reflect your personal driving behaviour, but also provides you with reports you can use to become a safer driver.”
Beginning April 2, clients who sign up will receive an automatic five per cent discount and could earn up to 25 per cent off their auto insurance, depending on their driving behaviour. When the policy comes up for renewal, and once the vehicle has passed 125 days and 1,000 km, the discount will be recalculated based on the data collected.
It is a technology that brokers are in an excellent position to take advantage now, says Randy Carroll, CEO of the Insurance Brokers Association of Ontario, and it is important to strike now while the iron is hot.
“The Ontario auto insurance industry is at a critical juncture, a tipping point,” says Carroll. “Brokers are in prime position to capitalize on this new technology, providing advice and consultation as “the new world” evolves before the eyes of inexperienced consumers.” (continued.)
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Waterloo-based IMS has received a lot of media attention through George Cooke, the president of Martello Associates and former head of The Dominion Insurance. Cooke participated in a recent panel discussion at the P&C technology conference, speaking on how telematics will radically change auto insurance throughout Canada.
Telematics has been one of the targeted technologies for the
IBAO and its membership, says Carroll.
“At the 2013 Annual IBAO Convention last October, the IBAO & IBRI announced that they would be launching a broker owned telematics solution,” he says. “This solution is moving full steam ahead and the offering is shaping up to be bigger and better than expected. Further details will be released this coming spring.
“We are pleased with the level of collaboration we are seeing from our markets, and brokers should feel confident that a telematics opportunity is not only keeping them in the game, but it will help them win the game.”
It is a technology that is being embraced not only by insurers, but drivers, says Don Dykeman, a broker with The Co-operators who attended the recent 12th annual Insurance Technology Conference.
“Drivers can take advantage of it right away,” Dykeman told Insurance Business, “Because the costs savings start as soon as you put the device in the car. There’s really no downside.”
For more on telematics, watch this
video. (continued.)
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A small wireless telematics device is plugged into a vehicle’s port to track participating clients’ driving in real time. Data collected include instances of sudden braking and rapid acceleration; as well as the total distance driven and times of day. The information collected as part of the program will only be used to reward safe drivers – it will never result in premium increases.
Participating clients can access their driving data online, including routes traveled, mileage, travel time, sudden braking and acceleration, as well as coaching tips, through the myenroute Dashboard. The information can be used by drivers to improve their driving behaviour, which could in turn result in more savings.
“Our insurance clients recognize the value UBI brings to their policyholders,” says Dr. Otman Basir, CEO of IMS, “because it enables personalized auto insurance premiums based on individual driving behavior.”
