Alberta's Ride-Sharing Decisions Set a Precedent Says Shop Insurance Canada
September 20, 2016 (PRLEAP.COM) Business NewsSeptember 20, 2016 - Alberta was the first to accept new regulations (through Edmonton) to legalize Uber and other Transportation Network Companies (TNCs). The province also became the first to accept an auto insurance standard for ride-sharing firms, earlier this month. Insurance expert, Shop Insurance Canada, says this will set a precedent amongst Canadian provinces who can use the Alberta model as a proof of concept.
The province of Alberta became the first to accept auto insurance for ride-sharing company Uber last month, alongside the regulations that allow such companies to operate in the province. This has opened a door where insurance companies are now offering coverage to ride-sharing drivers, and already the potential of this market is being glimpsed.
Shop Insurance Canada (ShopInsuranceCanada.ca) says while Ontario is close on accepting TNCs, Alberta has been a trail-blazer.
"Ontario approved Aviva Canada's ride-sharing auto insurance policy in March, the province itself has still not agreed to regulate Uber and other similar companies. That means Alberta is the first to have clear ride-sharing rules and legitimate insurance coverage, so the province is something of a proving ground."
The online insurance authority points out that insurance companies can now adapt to the market demand thanks to Alberta's decision.
"Already it is clear that insurance companies can fill a market gap that could have potentially huge amounts of customers. However, there is one caveat, namely that it is still unclear if Uber drivers will adopt auto insurance or whether they will continue to fly in the face of laws. If the company is serious about regulations, it will enforce auto insurance coverage upon its drivers."
Intact Insurance was the first to announce it has launched a ride-sharing insurance product in Alberta, starting from July 1. Aviva then revealed its trail blazing coverage will be heading to Alberta from August 1, after previously being exclusive to Ontario and Quebec. The latest company to back Transportation Network Companies (TCNs) is Pembridge Insurance Company.
More carriers are sure to follow in the coming weeks and months as major insurance companies wake up to the potential that the TCN market has.
"We support any insurance product that provides appropriate coverage for the individual risk and additional protection for the consumer," said Julia Marshall, President of the Insurance Brokers Association of Alberta.
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