B.C. still taking a long look at telematics

Ontario brokers may be partnering on telematics technology, but their British Columbia association counterparts are still taking a wait-and-see attitude – with what appears to be concerns over the potential for violation of privacy with this new technology.

Ontario brokers may be partnering on telematics technology, but their British Columbia association counterparts are still taking a wait-and-see attitude – with what appears to be concerns over the potential for violation of privacy with this new technology.

When asked if the B.C. broker association might follow suit on a telematics partnership that independent Ontario brokers have struck with Quindell Portfolio, Trudy Lancelyn, deputy executive director with the Insurance Brokers Association of B.C., said the west coast association was still considering the benefits of telematics.

“We’re maintaining a watching brief on the issue,” says Trudy Lancelyn, deputy executive director with the Insurance Brokers Association of B.C., “but beyond that, I don’t think we want to comment.”
Lancelyn did however refer InsuranceBusiness.ca to a statement released earlier this summer by the Insurance Corporation of British Columbia on PHYDs (Pay How You Drive):

“ICBC has to take many factors into account when considering any changes to how it sets insurance rates…. It is also worth noting that all usage-based programs require some form of onboard technology to monitor driving habits, which some would consider a violation of their privacy. (continued.)

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“We have seen various auto insurers implement different incarnations of pay-as-you-drive insurance with mixed results over the past several years. Now we are seeing various auto insurers look to include distance travelled as just one aspect, while also monitoring other ways drivers use their vehicles.”

Perhaps reflecting concerns over just how private the data gathered from this technology is, the B.C. Information and Privacy Commissioner has already ruled on one complaint involving telematics, coming down on the side of the company that was creating a personal profile of its drivers and their driving habits.

In Schindler Elevator Corporation 2012 BCIPC No. 25 (“Schindler”), the Commissioner considered the application of the B.C. Personal Information Protection Act (“PIPA”) to an employer’s use of a GPS-enabled data collection system used to monitor vehicles owned by the organization and operated by its employees.

The employer used a GPS and engine monitoring system in its vehicles called Fleet Complete. The complainant, a Schindler employee who made the complaint on behalf of himself and some co-workers, argued that the information collected was information about the movements, location and driving habits of identifiable employees and was thus “personal information” within the meaning of PIPA. The Commissioner found that the information collected constituted employee personal information, but that its collection and use was reasonable for the purposes of establishing, managing or terminating an employment relationship. (continued.)

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The decision did however highlight the fact that where an organization is collecting, using or disclosing employee personal information, PIPA requires that the employees be given prior notification that the organization is engaging in these practices.

IBAC vice president Lorne Perry stated at the association’s June meetings that “what we focused on right away was the ownership of the data. We have to make government, insurers and regulators aware that guidelines are needed that address existing privacy laws and the customer’s right to choice, qualified and objective advice, and to autonomous advocacy… we also need to make consumers aware that what they’re potentially giving up when they share vehicle data goes beyond insurance savings.”

Taking a cautious approach to telematics is necessary, Perry added, which spurred the multi-provincial task force that is putting together a strategy for telematics.

“Predictive analytics, claims adjusting – there are so many aspects to this that haven’t been explored yet,” Perry told the association. “Everything is so inter-connected. If one component is flawed or is overlooked, it can have a dramatic effect.”

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