Alberta is poised to make a decision on the approval of usage based auto insurance by the end of this year – and according to the Office of the Superintendent of Insurance in Alberta, the only real concerns at this point is exactly what data will be collected.
“Like Ontario, the information collected is to be considered personal and identifiable,” says Laurie Balfour, acting deputy superintendent of insurance in Alberta at a recent telematics conference in Toronto, Ont. “This means that Alberta’s privacy legislation will apply – that is, the Personal Information Protection Act. So that will be different than what is happening in Ontario.”
In Ontario, according to the Financial Services Commission of Ontario, UBI should be viewed as a ‘consent form,’ and for the early roll out of telematics, FSCO will only be looking at premium discounts.
“From a FSCO perspective, let’s only look at discounts for now,” says Bruce Green, the senior manager of rates and classifications for FSCO. “That means no mid-term re-rating; not using it for non-renewal or varying the term of a policy; and not using it for claim-related purposes at this time.”
The Alberta superintendent’s office is co-ordinating with the Alberta Office of the Information and Privacy Commissioner, says Balfour.
In Ontario, that province's privacy commission doesn't directly regulate the insurance industry, but acts more in an ombudsman capacity.
“If UBI is approved for use in Alberta,” she says, “we will expect that insurers will work with the Office of the Information and Privacy Commissioner to ensure that Alberta’s privacy legislation is respected.”
Included in this will be ensuring there is informed consent, says Balfour. (continued.)
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There are currently several applications for UBI programs before the Alberta office, says Balfour, along with ongoing talks with insurers and other telematics stakeholders.
As for rating factors, the regulator is deciding which rating factors, such as speed, acceleration, braking, turning, time of day, location – or GPS locator traction – as well as distance driven and mileage.
“Based on the rating factor framework and analysis that is being conducted,” says Balfour, “we will be determining which of those rating factors will be approved, and some may be prohibited.”
She does point out that the superintendent’s office doesn’t think of UBI as a rating factor, but “as a bundle of separate rating factors that will be pulled together to form the UBI program.”
The superintendent’s office will be using Alberta’s auto insurance rating factors framework, published last year.
