August, 2007 – Rate applications approved by the Financial Services Commission of Ontario (FSCO) during the second quarter of 2007 (April 1, 2007 to June 30, 2007) indicate an average change of -0.13%, based on the entire 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, and for 2006, approved rates declined by 1.27%. The combined change in approved rates for 2004, 2005, 2006 and the first half of 2007 is -14.32%.
In the second quarter of 2007, for the 31.12% of the market that had rate changes approved, the average rate change was -0.41%, when weighted by 2006 market share. The average rate change approved for the first quarter of 2007 was +0.20%, when weighted by 2005 market share (representing 54.60% of the market).
The rate changes approved in the second quarter of 2007 become effective in the second quarter of 2007 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.
To see the rate filings approved in this quester, visit http://www.fsco.gov.on.ca/english/insurance/auto/rates/q2-2007.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.