The hot water in which Uber has been simmering has just reached new thermal heights. Back in October 2016, hackers stole the personal data of 57 million customers and drivers containing their names, email addresses, phone numbers, and in the…Read more →
Another insurer has entered into Ontario’s ridesharing insurance market. Effective December 1, 2016, Northbridge Insurance provides ridesharing coverage for users of RideCo., a Waterloo Region-based ridesharing company. The new product seeks to fill existing coverage gaps under Ontario’s standard Ontario…Read more →
Brokers are very busy people these days. This is due to all kinds of new insurance products designed to stay on top of consumers’ changing needs. Choice is good for the consumer. It’s good for brokers, too. The wide variety…Read more →
As I reported previously, the Ontario government amended the fleet definition in Regulation 664 in early July. The amended definition reads as follows:
From my perspective, this is not an ideal resolution. However, it does fill in the insurance gap that has existed since Uber began providing its services in Toronto in 2012. One of the most important elements in the fleet definition has always been the requirement that there be common management. Common management is an element that is required in order for a group of vehicles to be considered a fleet, if they are not commonly owned or where they are owned by a leasing company. It refers to the fact that the owner or manager has a measure of control over the vehicles. A fleet is typically a discrete risk exposure whose experience and characteristics can be monitored and rated, and is affected by the actions of the owner or manager. The vehicles in a fleet are not individually rated as this is inconsistent with a key principle in fleet rating to establish a rate specific to the experience of the fleet. Usually, the manager of a fleet will implement rigorous risk management programs to monitor and improve experience and rating.
None of these circumstance remotely exist when it comes to Uber drivers and their vehicles. They are network of drivers connected to customers through an app provided by Uber. Their is no common ownership or management. It suggest that once an Uber driver turns on the app on his phone, he or she becomes part of a fleet. That decision isn’t even made by Uber.
Is this such a bad thing? It could be if it leads to further erosion of the fleet definition. The regulator has for years denied fleet policies because they failed to meet the test of common ownership or management. Will they be able to continue to push back against synthetic fleets? It would have been better, if the government had created a provision in the Insurance Act to deal specifically with transportation network companies. I expect it will take some time to determine whether the government and the insurance industry will regret the newly amended fleet definition.Read more →
After months of uber anticipation, FSCO has approved a new fleet auto policy, from Intact, for private passenger vehicles engaged in UberX activities. The announcement comes days after Intact launched a similar product in Alberta. Background UberX is a Web-based…Read more →
This week, the Ontario amended Regulation 664 to expand the definition of a fleet to accommodate ride-sharing services like Uber. The change opens the door for insurers to offer policies to drivers of vehicles for hire using an online app.
The regulation amendment expands the fleet definition to include vehicles available for hire through a common online-enabled application or system for the pre-arrangement of transportation. The vehicle owner or lessee is to be named insured under an auto insurance contract. The regulation change will make it easier for Ontario businesses to insure a group of privately owned vehicles under one insurance policy as a “fleet” when they are available for hire using an online app.
FSCO has already approved a fleet policy proposed by Intact Insurance Company. The Intact policy provides blanket fleet coverage under a standard automobile owner’s policy (OAP 1) for private passenger automobiles used in the transportation of paying passengers who utilize Uber.
The Intact fleet policy does not provide coverage when the driver is not logged onto the Uber online app. Coverage under the personal owner’s policy for the automobile is applicable.
FSCO also approved the use of an electronic insurance card for use in connection with ride sharing. The electronic insurance card will permit ride share drivers who are covered under the Intact policy the option to provide evidence of insurance electronically using an online-enabled app (e.g., to law enforcement officials).Read more →
Your professional development has never been more cutting-edge. Consider the fascinating research of Qui Trieu, manager of personal insurance at Perth Insurance, a wholly owned subsidiary of Economical Insurance. Qui (pronounced as ‘key’) is currently a candidate in the Insurance…Read more →
Just how much has the sharing, or gig economy changed our world? A cursory Google search on the topic will usually turn up this common description: The world’s largest taxi firm, Uber, owns no cars. The world’s most valuable retailer,…Read more →
The Financial Services Commission of Ontario has approved Aviva’s plans to offer a product for ride-sharing services like uberX. Aviva’s coverage will be available for drivers licensed for at least six years. Drivers can spend up to 20 hours a…Read more →
New technology options offer a rich environment of functionality combined with an engaging user experience. This combination can produce intended and unintended consequences. We believe the winners will be those that can plan for the unknown as well as the…Read more →
Today some topics we have written about before where something new and/or interesting came up. Here goes. On health insurance vs. nutrition advice: I finally got around to reading the study by Credit Suisse Research Institute: “Fat, the new health paradigm”. Although there isn’t much Continue readingRead more →
My colleagues in the IBM Institute for Business Value have been hard at work over the past few months, analyzing the responses of more than 5,200 interviews with C-Suite executives in 21 industries and more than 70 countries globally on the threats and opportunities facing Continue readingRead more →
Back in June, I confessed that, as a technology professional, I had been ‘economical’ with the truth about the impact new technology would have on employees. Some analysts suggest we are finding a path to a better future, but others…Read more →