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Monthly Archives: July 2019

How might car sharing insurance be changed?

Ontario’s government is considering applying changes to insurance relating to vehicle subscription services. Currently, services like Zipcar and Car2go allow their members to hop into cars parked throughout the province, drive and pay by account based on how much time they use the car. Typically, the insurance is included in some way as part of the service.

Tom MacMillan, as associate with Toronto-based Rogers Partners LLP predicts the changes would be that the coverage wouldn’t be through the subscription service itself but be member-independent. Although this would be labour-intensive for the insurer, being able to target drivers that wouldn’t meet the more stringent conditions of the policies would make it worthwhile.

At a recent stakeholder consultation, this was not on the list of priority items which means it’s not on the radar for the government until 2020 or beyond.


Data Shows Canada’s Climate Changing at a Rapid Pace

A government-backed report by Natural Resources Canada states that both past changes and predicted future trends in Canada are about double what is being seen globally. Driven by human influence, the nationally widespread warming is projected to intensify. The report explains how weather extremes will increase in the future, including frequency and severity of heat waves, risk of drought and wildfire, precipitation and coastal flooding.

These events are no longer occurring only in areas that have been traditionally exposed to them and this is bringing us into an era of increased threat to life and property. More severe weather events are leading to more damage and more insurance claims, causing greater strain on the government treasury for which they are financially unprepared for future disasters.

The government needs to take steps to help Canadians understand and adapt to the reality of climate change. The first step is to invest in consumer education, sharing data on how the changes are impacting the country. The government can also invest into water and sewage systems and make changes to improve land-use and building codes and standards.

The insurance industry is leading the discussion and encouraging citizens and governments to adapt to the rapidly changing climate. For more information, contact your broker or company agent.