Insurance News - Thursday, November 27, 2014

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Thursday, November 27, 2014:

• John Tory joins the Competition Bureau in speaking out against Toronto’s move to file an injunction in court against Uber ride-sharing service.
• A Toronto undercover investigation concluded that there are “real and urgent” safety problems with Uber, including issues with insurance coverage, driver screening and vehicle inspections.
• Meanwhile in California, ride-sharing service drivers from companies such as Uber and Lyft will soon be able to buy an amendment to their auto insurance coverage that will provide them with protection from the moment that they sign on and are waiting for a call to pick up a rider,
• Experts claim driverless cars could add $1.3 Trillion to U.S. economy from reduced accidents and productivity gains.
• Of course driverless cars could also open up employers to steal the last of your free time.
• Fraud has caused ridiculously high auto insurance rates in Detroit which now threatens the city's economic recovery by making it expensive for residents to stay in the city and discouraging newcomers.

Insurance News - Saturday, November 22, 2014

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Saturday, November 22, 2014:

• Bill 15, Fighting Fraud and Reducing Automobile Insurance Rates Act, 2014 passed this week with no changes.  The bill when proclaimed will transfer accident benefit disputes to the Licence Appeal Tribunal, implement the oversight of the billing practices of health clinics, and introduce new rules governing tow truck operators and vehicle storage yard.
• The legal community was unable to convince the government to make changes to Bill 15 which means the new dispute resolution system will have no access to the courts and prejudgment interest will be reduced.
• This week the Ontario government released its Fall Economic Outlook and Fiscal Review (pages 71-72 deal with auto insurance).
• Driverless vehicles and smart cities can cut auto fatalities and CO2 emissions by 2025.
• Armed with analytics, predictive modeling and big data, insurers are moving to take on application fraud.
• Automakers adopt protocols to handle and protect consumer data in connected car era.

It's Time That The Insurance Industry and Regulators Begin Accommodating Ride-Sharing Services

Uber, a San Francisco-based company estimated to be worth $17 billion (U.S.) is aiming to shake up the taxi business in Toronto.

Uber is reported to operate in more than 140 cities in 40 countries around the world, offering taxis, limos and car-sharing services, allowing customers to bypass traditional taxi companies and brokerages to request a ride using their smartphones.

When Uber first set up in Toronto in 2012, city of Toronto officials informed the company that it needed to get a brokerage licence. Uber disputed the request and has been insisting that it is not a taxi service, but rather a technology company, and therefore not subject to licensing requirements. The city has since hit Uber with 35 bylaw infractions and now the city is headed to court in an attempt to get an injunction to shut down the service. 

Toronto Mayor-elect John Tory is correct.  Uber and similar ride-sharing services aren't going anywhere.  Consumers like these new services and that's why there are using them.  Using a smartphone app, you will be told when the vehicle will arrive, who is the driver, the rating of the driver, the cost of the ride with tip and will allow you to pay for the ride without handling any cash.  No need to be standing in the cold or wet on a street corner waving your arm frantically trying to get a passing cab to stop.

The current regulated taxi model is archaic and costly.  The city limits the number of plate owners which has created wealth for plate owners who are often not the drivers. The dispatcher system is out of date when technology allows drivers and consumers to link up directly.  However, there is a lot of money tied up in the current system.  To make matters worse, the regulators appear to be very tied to the existing model.

The one thing that Uber is not short on is money.  They will fight this court battle as they have in other jurisdictions.  They typically come out on top.  Regulators should be designing new regulatory models to accommodate new technologies not fight them.  For example the Ontario Ministry of Transportation is working on a regulatory framework for driverless vehicles.  The insurance regulator and the insurance industry needs to develop insurance products that reflect these new technologies whether it is driverless cars or ride-sharing services.  

The insurance industry needs to recognize that ride-sharing is likely here to stay and properly underwrite these risks to protect drivers and their clients.

Insurance News - Thursday, November 13, 2014

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Thursday, November 13, 2014:

• Transcripts for public hearings on Bill 15, Fighting Fraud and Reducing Automobile Insurance Rates Act 2014 are now available online.
• Owning a car is expensive.  So is ridesharing services like Uber cheaper than owning a car?
• Why do so many consumers seek out "cheap" auto insurance given the expense of their new cars or trucks — easily $30,000, $40,000 or even $50,000 or more for high-end models?
• Driverless car researchers develop plans to prevent hacking on the highway.
• Your car may be programmed to kill you and 9 more fun facts about driverless vehicles.

Insurance News - Tuesday, November 11, 2014

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Tuesday, November 11, 2014:

• Bill 15, Fighting Fraud and Reducing Automobile Insurance Rates Act, 2014 passes second reading and has just one day of public hearings.
• Toronto man charged with selling fake auto insurance some drivers on the road without coverage
• Will we need a learner's permit for self-driving cars?
• Utilities, taxis, construction and mining, government and public sectors, emergency services, public transportation and local delivery services will all likely have telematics installed on their vehicles.
• Fatal California accident will test Lyft's $1 million auto insurance policy.
• B.C. Transportation Minister says plainclothes transit agents posing as potential customers will be deployed to ensure taxis and their drivers are operating by B.C.'s rules, which are enforced to ensure passenger safety.