What’s on the horizon for B.C.’s auto insurer?

Insurance Corporation of British Columbia (ICBC) is looking at creating an overarching data strategy, including collaborating with partners like brokers and launching two telematics pilots.

“We have to really dig into our strengths at ICBC,” says Kelly Aimers, the insurer’s vice president of insurance and chief actuary. “We have access to a lot of data.

“We don’t score it all, we don’t provide it all, and so it’s really working with other partners about what data they need to make those good sound investments.”

Speaking at the Insurance Brokers Association of B.C.’s AGM and Leaders Conference in Kelowna on Monday, Aimers says there’s often limited resources and infrastructure, particularly in the Lower Mainland. So, ICBC is looking at using its data to help others.

“Something we’re going to be starting this year is meeting with those partners, understanding the problems, and then creating a comprehensive strategy to start to collect the data…to help others make better decisions,” she says.

Telematics data

The data strategy will include two telematics projects.

ICBC’s first project is Drive Smart Pro, geared at commercial auto customers and offering them a 5% discount off their collision coverage.

“The idea here is we’re partnering with a data aggregator,” Aimers says. “A lot of our fleet customers will already use telematics…so what the data aggregator will do is collect all of that information from each of the telematics providers.”

Since each provider examines and assigns different values to certain risk attributes, the data aggregator will “normalize it across the board,” Aimers says.

“So that way, when we receive the data, it’s in an apples-to-apples format,” she explains. “Then we can start to look at trends, understand risk attributes — perhaps [see] where are those risk paths, what are some risky behaviours. And with that information, we can start to develop…more programs and help [fleets] become safer on the roads.”

The second telematics pilot, first introduced before the COVID pandemic, but then put on hold when driving levels dropped, is a phone app for inexperienced drivers (those with fewer than five years of experience). The pilot will use gamification and positive reinforcement to encourage newer drivers to drive safely.

“It’s not about penalizing, it’s not about charging more, it’s about collecting information and providing coaching, training,” Aimers says.

The app will track and study how a customer drives for a few weeks. For example, if they are a high speeder, it’ll tailor coaching and training around speeding, trying to get that driver to speed less. The app will award points that week if a customer drives less or slower. Customers can use points to buy things like gift cards or coffee cards.

“Hopefully, we can change the culture of safer driving out there,” Aimers says, adding that the app is expected within the next few months.

With both telematics projects, the idea is to collect information, use it and then enhance it later on, she says.

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Spotlight on road safety

Telematics data can also be used to pinpoint road safety issues. For example, in the States, telematics data once showed frequent last-minute breaking at an intersection, Aimers says. “They went out to the intersection, and they saw that a tree was covering the stop sign.”

From a road safety perspective, ICBC engineers work closely with municipalities, which sometimes lack resources and expertise to put road improvements in place. And so, the insurer has started looking at all road users, including pedestrians and cyclists.

“It’s helping [municipalities] make the investments for dedicated bike lanes, crosswalks, wider corners,” Aimers says. “I just saw the other day that we put an overpass over in Radium Hot Springs.

“We helped out municipalities there, even helped animals get safely across the highway,” she says. “That, of course, leads to fewer animal collisions on the road, so lots of investment there.”

Jason Contant

Jason has been an award-winning journalist with Canadian Underwriter for more than a decade, including the past three years as associate editor and, before that, as digital editor for seven years.