Ontario private passenger auto insurance approved rates decreased during the third quarter of 2006 (July 1, 2006 to September 30, 2006).
In the third quarter of 2006, for the 79.93% of the market that had rate changes approved, the average rate change was -0.46%, when weighted by 2005 market share. The average rate change approved for the first quarter of 2006 was -0.71%, when weighted by 2004 market share (representing 41.09% of the market), and for the second quarter of 2006, was -1.42%, when weighted by 2005 market share (representing 46.67% of the market).
In 2004, rate changes approved for the entire market averaged -10.60%. For 2005, approved rates declined by 2.43% for the entire market. The combined change in approved rates for 2004, 2005 and the first, second and third quarters of 2006 is -14.35%. The rate changes approved in the third quarter of 2006 become effective in the third quarter of 2006 or later for renewal business.
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.
The posted rate changes reflect cost saving measures arising from recent reforms to the automobile insurance system, which are being passed on to consumers in the form of lower rates.
For company by company details, visit http://www.fsco.gov.on.ca/english/insurance/auto/rates/q3-2006.asp
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.
FSCO is an agency of the Ontario Ministry of Finance, and regulates insurance, pensions, credit unions, caisses populaires, co-operatives, mortgage brokers, and loan and trust companies. For more information, visit www.fsco.gov.on.ca