Brokers who are dreading the arrival of driverless cars in Canada should be forewarned: Ontario has become the first Canadian province to approve the testing of autonomous vehicles on public roads, according to Ontario Transportation Minister Steven Del Duca.
"For Ontario, the benefits of being part of automated vehicle innovation are clear," he said. "In order to compete, Ontario needs to be consistent with the approach of U.S. jurisdictions."
Del Duca made the announcement today at the University of Waterloo, alongside local MPPs and Ontario’s minister of economic development. The provincial leaders may allow testing to begin as early as January 1, in an effort to prevent innovators from relocating to “competing jurisdictions.”
While extensive details about the initiative will not be released until November, the Ministry of Transportation did outline its insurance obligations necessary for all autonomous vehicle trials. These include a provision that any operator must carry a $5 million insurance policy, as well as the requirement that any accidents or damages caused by the vehicle must be reported within 10 days, according to the Toronto Star.
That $5 million sum may help allay brokers’ fears over their role in a driverless car society.
The pilot project will permit autonomous vehicles to operate on any public road or motorway, as long as a trained driver is present at all times and mechanisms are in place to override the computerized system in an emergency. The cars must also follow all rules of the road, including the Highway Traffic Act.
Brokers and other insurance professionals are already being called upon to develop coverage for any upcoming technological breakthrough. Brad Duguid, Minister of Economic Development, Employment, and Infrastructure, instructed the industry to “move fast” on driverless car policies in order to avoid falling behind the times.
"When you're in a state of sector disruption, the insurance industry has no alternative but to be part of that conversation," Duguid told Newstalk 1010. "They're trying to figure this out as well."
The province will host a roundtable with insurance companies in late October to discuss the potential impact of mainstreamed autonomous vehicles on the industry.
