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ARTICLE · 08 FEBRUARY 2021

Reducing Complexity And Facilitating Results: CAVs And Canadian Auto Insurance

Borden Ladner Gervais LLP
Borden Ladner Gervais LLP
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Borden Ladner Gervais LLP

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In January 2021, the Canadian Council of Insurance Regulators (CCIR) released a paper outlining a number of issues to address as connected and autonomous vehicles (CAVs) become increasingly prevalent in the automobile sector.

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In January 2021, the Canadian Council of Insurance Regulators (CCIR) released a paper outlining a number of issues to address as connected and autonomous vehicles (CAVs) become increasingly prevalent in the automobile sector.

The CCIR's paper contains the results of a small-scale survey conducted across several government and industry associations. The survey indicates that most respondents acknowledge that CAVs will have a significant impact on automobile insurance. A majority also agreed that CAVs posed at least some risk to the industry. However, only half of survey respondents felt that insurance premiums would decline over the long term, which raises the question of what the perceived risk from respondents is, if not for a decline in premiums.

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