Canadian Auto Insurance

Recently, technological giant CGI has rolled out what it is calling Enhanced AutoPlus. The Enhanced AutoPlus system is designed to capture a much more accurate picture of a vehicle’s accident and repair history in effort to have better data in which with they can underwrite premiums for their new and existing customers. Bringing to light much of the fraud which currently plagues the industry, as well as working to act as a deterrent to those individuals considering potential fraud, Enhanced AutoPlus is being highly welcomed by the bulk of Canadian auto insurance companies.

One of the primary benefits that CGI is touting with the implementation of Enhanced AutoPlus is that although rates may be going up for drivers with a less than stellar driving record, over time, those increased premiums partnered with good driving records on the part of other drivers may mean lower premiums for drivers with better driving records. Although this decrease in premiums for good drivers may not be immediate, CGI is confident these decreased premiums will be realized sooner rather than later.

With the current AutoPlus system in place today, although it has served its purpose, the industry is claiming to lose millions of dollars annually due to what it refers to as “premium leakage”, or premiums they cannot collect on because they do not currently have an accurate picture of what a vehicle’s repair history might be. That being said, CGI has gone on record as stating for every dollar the insurance industry invests into the Enhance AutoPlus system, it can expect to make $85 in additional ROI. With a potential annual return of over $300 million, there is not much preventing the auto insurance industry to jump at this opportunity.

Not everyone is thrilled with these latest technological innovations though, as many Canadian citizens see this as nothing more than an opportunity for Big Business to continue increasing their individual revenues at the expenses of the country’s working class. Some officials, most of whom support a government-run auto insurance system, are touting this to the masses as another “cash grab” on the part of private business.

As a brief rundown, here a some of the pros and cons of implementing this new system:

Pros
• Continued focus on accuracy when it comes to underwriting premiums
• Increased accuracy will lead to uncovering or deterring fraud against the industry
• Less fraud may result in lower premiums for customers
• Lower premiums for better drivers may promote safer driving

Cons
• Increased perception of Big Business taking care of themselves and the citizens expense
• Cost-savings realized by auto insurance industry may not be passed on to consumer as anticipated
• System is not full proof, so some fraud will continue to occur

In closing, the Enhanced AutoPlus system provides some internal oversight for companies looking to protect themselves from fraud and promote safer driving from their customers. Additionally, there are increased revenues this system will initially bring in. How companies opt to distribute said revenues will dictate the overall success of the system itself.