Opinion: Privacy safeguards will protect Albertans who choose usage based insurance

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Alberta’s government has proposed immediate changes in the automobile insurance system to fix a broken system by stabilizing costs and enhancing medical benefits for Albertans.

One of these measures increases the ability of insurers to provide more options under usage based insurance programs. These programs will give drivers more choice and control over their own insurance costs. I have seen some concerns raised about privacy of information under these programs and want to assure Albertans that their information is protected.

First, all usage based insurance programs are entirely voluntary.

Second, these programs will not impact the premiums of drivers who choose to not use usage based insurance options. And to prove that, insurers with usage based insurance programs must demonstrate to the Automobile Insurance Rate Board that their program does not impact non-usage based insurance customers.

To put it simply, this means that an insurer is not allowed to charge non-usage based insurance drivers more to offset the discount offered to usage based insurance customers.

Finally, regarding privacy of information, there are a number of safeguards in place. Insurers offering usage based insurance must comply with existing privacy requirements under Alberta’s Personal Information Protection Act, including the requirement to file a privacy impact assessment with the Office of the Information and Privacy Commissioner.

Alberta’s Superintendent of Insurance has also issued guidance requiring insurers to obtain informed consent in writing from motorists to make certain that consumers are aware:

• Participation is voluntary;
• How information is being collected, by whom, as well as a requirement that insurers explicitly state the nature and scope of GPS data;
• Where information is being stored and what measures are being used to secure the information;
• Who is privy to the information;
• How the information will be used;
• Which driving behaviours are measured and how; and
• Provide a contact to answer questions on data use collection and disclosure.

Alberta motorists who choose to participate in usage based insurance programs can be confident that their information is secure.

Automobile insurance premiums in Alberta have been rising. The broad suite of changes we have proposed will stabilize rates for drivers, increase medical benefits and provide more insurance options for Albertans. These changes will help ensure Alberta has a fair and sustainable auto insurance system.

Travis Toews is president of the Treasury Board and minister of finance for the province of Alberta.