The key to staying relevant is adaptability and the Ontario auto insurance industry is doing just that. We’ve shared the top three most interesting and latest insurance trends.
As the world changes, the insurance industry has no choice but to adapt. Advancements in insurance technology aren’t new, however, they're growing at a faster rate than ever before. We’ve shared the trends that have caused the insurance industry to react and adapt rather quickly.
Four Interesting Ontario Insurance Industry Trends
#1 Ridesharing |
Ridesharing is a service that arranges transportation on short notice. The two largest ridesharing companies in Ontario are Uber and Lyft.
Ridesharing is here to stay, that’s why the insurance industry adapted and offered options. The Financial Services Regulatory Authority of Ontario (FSRA) has approved and permitted auto insurance for ridesharing companies, listed here. Furthermore, FSRA explains, “All drivers, passengers, and vehicle owners are covered from the moment the app is turned on to the moment passengers exit the vehicle. When the app is turned off, the vehicle owner’s personal auto insurance policy applies.”
#2 Carsharing |
Carsharing is a type of car rental where individuals rent cars for small periods of time, frequently by the hour. The difference between carsharing and renting a car is that carsharing you can rent a car for one hour, whereas with a rental car you have to rent by the day. The three most popular carsharing companies in Ontario are ShiftRide, Turo, and Eligo Cars Inc.
#3 Usage-Based Insurance (UBI) |
Insurance Business Magazine online explains, “Usage-based insurance (UBI), also referred to as pay-per-mile, pay-as-you-drive, or pay-as-you-go, is a type of auto insurance that, depending on the specific insurer’s program, can measure how far a vehicle is driven, where it’s driven, and/or how it’s driven.”
#4 Autonomous Self-Driving Vehicles |
Fully automated, self-driving vehicles are no longer just an idea, they are something we could see on the road in the near future. With this in mind, the insurance industry will have to establish a way to effectively insure these vehicles, by uncovering a new way to calculate coverage and premiums. Autonomous vehicles will make the roads safer by eliminating human error and dangerous driving habits. We’ll have to wait and see if this means insurance premiums will decrease or not.