Connected and autonomous vehicles in Ontario Implications for the insurance industry


The transition to widespread adoption of connected and autonomous vehicles (CV/AVs) is underway in Ontario. Researchers estimate that about two-thirds of vehicles in Canada currently have some connectivity (i.e., embedded telematics); by 2022, approximately 70% – 95% of new cars in Canada will have vehicle to infrastructure (V2I), vehicle to vehicle (V2V), and other telecommunications capabilities (e.g., vehicle to smartphone). Currently, vehicles available to consumers are primarily Level 1 or 2 automation. While a number of major manufacturers plan to launch autonomous passenger cars in the next year, consensus in the literature is that deployment of Level 4 or 5 vehicles on public roads will not be commonplace until the 2030s or 2040s. In fact, major auto-manufacturers including Ford and GM have indicated their first autonomous fleets will be dedicated to commercial operations.
The Ontario government, working across a number of ministries, commissioned this report in order to gather more evidence on the implications of CV/AVs for insurance in Ontario, including key themes, gaps in knowledge, and areas requiring further investigation. This research reinforces Ontario’s position as a North American leader in transformative automotive technologies, as well as transportation and infrastructure systems. Filling these important research gaps and making the research public will support Ontario’s innovation ecosystem and enable it to capitalize on the opportunities presented by the projected mass adoption of CV/AVs in the decades to come. This document also breaks down context, key themes, and implications for Ontario as well as recommends 22 defined issues where further research is needed.

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