Andrew Richardson
L’avenir semble être pressé d’arriver. Les véhicules automatisés / connectés (AV / CV) sont juste la dernière itération d’une tendance qui va de votre réfrigérateur qui commande lui-même des produits à l’épicerie à votre haut-parleur qui vous donne des conseils sur quoi porter le matin. Malgré le plaisir évident lié à ces nouvelles technologies, leur impact est profond; l’introduction de véhicules automatisés change la donne pour l’industrie de l’assurance – à la fois en termes de risques et d’opportunités. Andrew Richardson, conseiller au bureau de NATIONAL à Ottawa, explique. (Le billet est en anglais.)
———
It’s time for the auto insurance industry to check under the government’s hood.
The future seems like it is in a hurry to get here. Automated/connected vehicles (AV/CV) are just the latest iteration of a trend that includes your refrigerator ordering groceries for you and your audio speaker giving you advice on what to wear in the morning. Despite the plain fun relating to these new technologies, their impact is profound; the introduction of automated vehicles is a game changer for the insurance industry – both in terms of risk and opportunity.
According to the Insurance Institute of Canada, auto insurance makes up half of all premium revenue generated by the insurance industry in Canada. South of the border, a recent US government study found that 93% of collisions in the United States are caused by human error; it would not be too difficult to imagine these numbers being mirrored in Canada.
For over a hundred years, motor vehicle driving has been a human activity but that model might soon be a thing of the past. With automated vehicles reducing the risk of human error, the question needs to be asked by insurance companies and other stakeholders: What happens to the auto insurance industry when the demand for individually-held auto insurance disappears almost entirely?
These concerns are compounded by the looming sharing economy. Will as many Canadians even be buying their own vehicles in 10 to 20 years?
Some will say that this problem is one for the distant future. Fully automated vehicles aren’t expected to be on the road for another couple of years, and it will be another 20 to 35 years before all human-controlled vehicles are gone. Policy analysts from various financial firms have even gone so far to suggest that revenue will remain consistent due to higher repair costs. And they might be right.
But even if they’re right, the government is starting to think about the future of cars right now. At this very moment, government officials in Ottawa and in provincial capitals are studying these issues and developing long-term policy on topics such as:
- Road Infrastructure
- Privacy and Data considerations
- Automated Vehicle Regulations
- Economic Development Issues
- The Sharing Economy
- Transportation Regulations
Insurance providers should take a proactive approach to working with governments in order to shape policy as it is developed, rather than responding to finalized policy decisions that will be difficult to change or influence. This approach should be a natural fit for the insurance industry since it is risk mitigation at its best. Industry would be wise to take steps to minimize business-damaging risks before they can occur – something that should come naturally to the insurance industry.
The time for engagement starts now, and there’s a genuine opportunity for leaders in the insurance industry to be the voice that shapes and modernizes the insurance industry in the face of sweeping changes that are just down the road.
——— Andrew Richardson était directeur adjoint, Politiques et stratégiea au Cabinet de relations publiques NATIONAL
