Telematics Questions:

Q: Will there be a commercial offering?

A: We are currently having conversations along these lines with some insurers and
with some individual Brokers. Personal lines will be the first offering with
Telematics, but commercial is on our radar, and if you would like more details as
it relates to commercial, contact Colin Simpson at the IBAO office.

Q: When a client cancels, where do they send the device?

A: A postage paid envelope is given to the insured to return the device; if they dont
the Telematics customer service center will be following up with them.

Q: How easy are the devices to install?

A: The device works in cars 1996 and newer and is very easy to install. An
instruction guide will be sent with the device and if your insured is still having
difficulty, they will be able to contact the call center for assistance.

Q: Who has access to the data?

A: Data goes directly to the insurance company, but you and the insured have
access to the data the companies are capturing.

Q: What are your thoughts on the data starting to marginalize parts of society,
similar to credit scoring?

A: As part of the filing process, FSCO approves what data can be used and
collected. At this time based on the conversations with have had with FSCO we
are confident that they will not let data be used in any way that would harm
consumers.

Q: How will the Telematics device distinguish between drivers?

A: The data that the box sends is based on how the vehicle is driven regardless of
whom is driving it. You own the vehicle and having others driving it will affect
your rating.

Q: Who is the Ingenie product available to?

A: Ingenie is only available to 16-24 year old drivers who are the principal operators
of their own vehicle.

Q: What kind of data is collected?

A: The data collected depends on several factors including the age and model of the
vehicle and the type of Telematics box being used to collect the data. The most
common data elements that we have seen includes vehicle cornering, braking,
acceleration, kilometers travelled and time of day.

Q: How will you manage consumers concerns with privacy?

A: When a consumer signs up for a Telematics product, the company responsible
for the data collection is required to disclose what the data is going to be used
for (this will most commonly either be IBRI or the insurance company). It will be
a brokers responsibility to understand the content of each consent to explain the
pros and cons of the consumers privacy concerns in relation to the product
being offered, e.g. Company A may collect information on the time that you drive
during the day; Company B may not. Company A may reserve the right to sell
consumers data to other interested parties; Company B may not.

Q: Why arent you introducing this to the grey market first?

A: The grey market has not been overlooked, but the biggest gap of who we do not
insure is the 16-24 market. We know from what we have learned that this
market is one that we can easily influence and improve driving behavior. If we
can provide better service and provide coverage for young drivers, we lessen our
chances of also losing the parents business like we are now to the direct
channel.

Q: How do you manage speeding? Is 120 considered speeding?

A: It will be up to each insurer to determine what is deemed to be safe driving.
Some may frown upon excess speed whilst others may not be as concerned, but
each insurer will base their rates on different factors and algorithms.

Q: Is the data collection regulated?

A: FSCO will provide oversight with the data and its use.

Q: Can a consumer disable the box?

A: Tampering or taking the box out of the car can happen, but the company will be
notified immediately when the box has been disabled.

Q: Will Telematics be used in theft & recovery of a car?

A: Yes, it can be; when the vehicle ignition is turned off, the car can be disabled
and found using the GPS. 98% of vehicles stolen in the UK that have this box
installed in them are recovered within 2 hours.

Q: What is the broker E&O exposure to Telematics?

A: We do not believe that these are any more risk than what you face today.

Q: Can the data be tampered with via hackers?

A: Not to our knowledge.



Q: Are all BMS companies able to accommodate this data into their systems?

A: We are working towards that now, and we are hosting an all BMS meeting at
IBAO in June of this year.

Q: Which BMS system is moving the quickest to incorporate the data?

A: As far as we know at this time Keal

Q: How much savings is actually seen by the consumer?

A: The most common savings obtained by a user of Telematics is around 10% to
15%. However, certain programs/products that are aimed at higher risk drivers
can experience discounts that are significantly in excess of these figures when
driving behavior changes are factored in. The Ingenie product is a perfect
example where substantial savings can be achieved by younger drivers.

Q: Can you elaborate on the future of automotive technology and how Telematics
fits into the bigger picture?

A: We believe Telematics will have a shelf life of 5 to 6 years before it is replaced
with the next best technology offering, but it is technology we cannot ignore.

Q: How can /should I manage the Intact solution?

A: Three answers 1. As Brokers we do not support multiple Telematics solutions,
and all insurers should be working with IBRI to support a single broker-owned
solution. 2. Do not give consent to any insurer to contact your consumer directly
for anything other than what they do now within the direct bill process 3.
Contact them and encourage them to keep working with us to align their offering
to overcome our concerns.

Q: How will the branding work? Is it an Ingenie branded product, or a broker
branded product?

A: The Ingenie product will be co-branded with the broker.

Q: Will there be a cost for member brokers to participate?

A: There is no cost to IBAO member brokers who participate.

Q: If I dont represent one or more of the companies in the Ingenie model, will I
need a contract with them?

A: No, there is no need for you to have a contract with these carriers, as it is most
like a wholesale broker arrangement that you might participate in now.






Q: Does the Telematics device require cell phone coverage? What will happen in
northern areas or poor cell phone areas in the province?

A: The Telematics device does not require a cell phone, but it does require access
to a wireless network. Areas in the province such as northern Ontario may cause
the device to have intermittent service, and insurers will have to recognize this
as a service issue and not tampering.


Q: If I have a vehicle insured with Ingenie with company A and I have the parents
insured with company A as a regular market, can I apply multi vehicle discounts?

A: Until filings are approved, we are unable to answer the question at this time.


Other Questions:

Q: What is happening with the MTO and the new contracts we were required to
sign?

A: The only change to the contracts was the removal of IBC. The terms and
conditions did not change.

Q: Why didnt IBC take a position on credit unions?

A: IBC has taken the position not to have a position on issues related to
distribution.

Q: Are we hopeful that Bill 171 will be passed in advance of an election?

A: Yes, hopefully before the election is called. We need you to speak with your
MPPs to have them support Bill 171.

Q: How can others give consent on behalf of others (i.e. a husband for a wife)?

A: The new consent wording has been reviewed by legal and is being treated in the
same way as consent to gather information similar to what is used today in
managing consent with a commercial fleet program. The owner of the fleet
policy is assuming the responsibility to speak on behalf of all the drivers listed on
the policy. The Named insureds or policyholder assumes that same responsibility
in the proposed wording.

Q: Why is banning credit scoring IBAOs third priority? I want it to be first!

A: Currently, it is not the time to push this issue, as it does not take away the
importance of our message; but if we tried to elevate the credit issue, it would
get lost with everything else that government is dealing with. We will continue to
push the message through one on one meeting and informal channels available
to us.