Ontario private passenger auto insurance rates rose during the fourth quarter, October 1, 2002 to December 31, 2002.
The rate applications approved during the fourth quarter of 2002 indicate an average increase of 9.2 per cent, when weighted by market share for those insurers making rate changes. This compares to an average increase of 8.33 per cent for rate applications approved during the third quarter, July 1 to September 30, 2002.
The average cost of auto insurance in Ontario at the end of the fourth quarter of 2002 was 15.76 per cent higher when compared with the end of the fourth quarter a year earlier. This calculation is based on the renewal effective dates of the rate changes. The average cost of auto insurance is now 13.42 per cent higher than the third quarter of 1996, preceding the introduction of Bill 59 (the Automobile Insurance Rate Stability Act, 1996) on November 1, 1996.
The approved rate change shown for each insurance company is the average for that particular company. The impact of a rate change on an individual consumer will vary depending on where the consumer lives, the type of car he or she is driving, and other risk characteristics.
FSCO will continue to ensure that insurance companies’ rate changes are reasonable and justified, and that the rates insurers charge are balanced with their ability to meet their future claims costs.
For a table of rate increases approved by company during this period, and prior periods, review the documents posted on the web – visit the FSCO web site at www.ontarioinsurance.com and select “Insurance” in the left navigation bar, then “Auto Insurance”. There you will find the approved rate increases, by company, for each quarter over the last several years.Tags: Capgemini, Efma, InsurTech, World Insurance Report