FA-insured Alberta fleets could slash premiums with telematics

Alberta fleets that rely on Facility Association (FA) for insurance coverage have a chance to cut their premiums by up to 8% -- if they accept video-based telematics devices in their vehicles. The voluntary program, which begins May 1, is meant to help improve driving habits and correct poor driving behavior, with the goal of helping businesses qualify for standard insurance markets. Once the program is launched, FA says it will explore opportunities in other jurisdictions.

Foresight Analytics will install the related telematics device and manage the data, generating a daily score that reflects risks like red light violations, distracted driving, following too close, hard braking, late braking, weaving in lanes, harsh turns, no seatbelts, and lane violations. While FA won't receive the data that generates the scores, in the name of protecting driver privacy, it will collect mileage driven outside the province to help ensure premiums reflect actual risks.

Facility Association (FA) essentially acts as an insurer of last resort, offering coverage to those who can't secure insurance from other providers. The risk associated with such insurance is shared by other insurers in the jurisdiction.

FA operates in Yukon, Nunavut, Northwest Territories, Alberta, Ontario, Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador. "There are a variety of reasons why drivers end up with FA, but poor driving habits or behaviours are the most common," Facility Association president and CEO Saskia Matheson said in a press release. "Being insured through FA is meant to be temporary. We believe that consumers are best served in an open and competitive insurance market and this new telematics program can help them get there."

Increases 'not sustainable'

Its share of Alberta's trucking market has increased significantly since 2018.

FA insured 47% more vehicles in 2021 than it did in 2020, and numbers increased another 14% in 2022 compared to 2021. "We know this is not sustainable going forward and it's the primary reason this program needed to be launched now," said Fadia Charbine, vice-president - underwriting, claims and operations. "By providing daily feedback, this program not only provides drivers with the additional training and experience, but it will also support safer roads and highways in the province." The Alberta Motor Transport Association applauded the move.

"This initiative provides drivers with real-time feedback on how to improve their driving habits, which will help improve the safety of our roads, and provide drivers the experience they need to have access to lower insurance rates," said Willie Hamel, president of the Alberta Motor Transport Association (AMTA).