Toronto, ON (Oct. 11, 2013) – Under Ontario law, an application (filing) for approval of automobile insurance rates or a risk classification system must be in a form approved by the Superintendent and must be filed together with such information, material and evidence as the Superintendent specifies.
This Usage-Based Insurance Pricing (UBIP) Bulletin is to be used in conjunction with the Filing Guidelines applicable for private passenger automobile (PPA) filings for rates or risk classification systems.
The purpose of this UBIP Bulletin is to communicate to insurers the Superintendent�s additional considerations and requirements for automobile insurance filings that contain a UBIP component and thus facilitate the process of preparing as well as reviewing these filings.
Usage-based auto insurance programs are relatively new to the Ontario market. However, UBIP programs are operating in a number of jurisdictions in the USA and Europe. With usage-based pricing, drivers have more control over their auto insurance costs, as their usage patterns and driving behaviour can directly influence their rates. In addition to savings for drivers, benefits from UBIP programs could include fewer accidents and less congested roads by encouraging safer and less frequent driving.”
The bulletin provides information about:
- Personal Information and Privacy Requirements;
- Personal Telematics Data: Insurer Transparency and Consumer Consent;
- Complaints, Inquiries and Customer Support;
- Driver Education and Transparency in Rating and Risk Classification Systems;
- Changes in Rating;
- Limitations on Collection and Use of UBIP Data for Insurance Purposes;
- General Rate-Filing Information;
- UBIP Program Costs and the Impact on Insurer Expenses;
- Reasonability of UBIP assumptions and the provision of adequate support;
- Compliance with the Unfair or Deceptive Acts or Practices (UDAP) regulation;
- General Data Considerations: accuracy, security, storage, at termination;
- Roles and Responsibilities: Insurers and Third Party Providers.
Read the details at http://www.fsco.gov.on.ca/en/auto/autobulletins/2013/Pages/a-05-13.aspx.
The Financial Services Commission of Ontario is a regulatory agency of the Ministry of Finance that regulates insurance, pension plans, loan and trust companies, credit unions, caisses populaires, mortgage brokering, and co-operative corporations in Ontario. Visit www.fsco.gov.on.ca for more information.