January, 2007 – Ontario private passenger auto insurance approved rates increased slightly during the fourth quarter of 2006 (October 1, 2006 to December 31, 2006).
Based on the entire market, the average rate change for the fourth quarter of 2006 was +0.05%. In 2004, rate changes approved for the entire market averaged -10.60%. For 2005, approved rates declined by 2.43% for the entire market, and for 2006, approved rates declined by 1.27%. The combined change in approved rates for 2004, 2005 and 2006 is -14.30%.
In the fourth quarter of 2006, for the 28.51% of the market that had rate changes approved, the average rate change was 0.16% 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), for the second quarter of 2006 was -1.42%, when weighted by 2005 market share (representing 46.67% of the market), and for the third quarter was -0.46%, when weighted by 2005 market share (representing 79.93% of the market).
The rate changes approved in the fourth quarter of 2006 become effective in the fourth 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.
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 details about rate changes approved in 4Q 2006 by company, see http://www.fsco.gov.on.ca/english/insurance/auto/rates/q4-2006.asp
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.