The Ministry of Finance (“MOF”) has approved a pilot project, through FSRA’s Test and Learn Environment (“TLE”) that will explore the sale of automobile insurance through dealerships. The TLE is a “controlled environment” to test new business models before they are introduced to the market. The goal is to promote choice, convenience, and competition.

The project is still in the works and it is unclear what the delivery model will look like for dealers if it is approved. The changes may involve sales by brokers, agents, or direct writers present at the dealership. Insurance could also be offered as part of a consolidated price for the vehicle. Whichever model the MOF ends up landing on, one thing is for certain—there are still many details that need to be ironed out.

For example, currently, any person at the dealership on the sales floor, and dealing with customers for the purchase of vehicles, extended warranties, GAP/loan insurance, rust proofing or other aftermarket add-ons must be registered with OMVIC as a salesperson.

Will brokers, agents, or direct writers present at the dealership need to be registered with OMVIC under this model? Will existing OMVIC registrants be able to offer insurance?

The change is a step in the right direction, but many questions remain unanswered.

The UCDA will continue to monitor the developments of the program and provide our members with updates as they become available. For more information see our website: https://frontline.ucda. org/dealers-selling-insurance/