Toronto, ON (Oct. 20, 2015) – This notice provides an overview of the private passenger automobile insurance rate changes approved or ordered by the Financial Services Commission of Ontario (FSCO) for filings reviewed in the third quarter of 2015. The number of filings reviewed by FSCO and the overall average rate change for the Ontario market may vary from quarter to quarter, based on updated information about claims costs, market conditions and other financial factors and the resulting impact that these factors have on the adequacy of an insurance company’s current rates.
Average Rate Changes
FSCO approved 45 private passenger automobile insurance rate filings during the third quarter of 2015. A total of 40 insurers submitted the filings.
These insurers represent over 75% of the market based on premium volume. Approved rates decreased on average by 0.50% when applied across the total market. Rate changes approved for each insurer this quarter and effective dates of the rate changes are shown in Table 1 (follow the link below).
This compares to an increase of 0.60% on average for the second quarter of 2015.
Regulatory changes have been made to require that all insurers offer a discount to policyholders for the use of winter tires. The winter tire discount must be made available for contracts issued or renewed on or after January 1, 2016, for all eligible private passenger automobile policies.
Insurance companies that did not offer a winter tire discount were required to submit a filing to FSCO no later than August 28, 2015. This quarter saw the approval of the majority of these filings.
For more about individual rates and changes, FSCO’s rate approval process and the Ontario automobile insurance cost and rate reduction strategy, refer to Auto Insurance Rates for the Third Quarter of 2015 on the FSCO website.
About the Financial Services Commission of Ontario
FSCO was established under the Financial Services Commission of Ontario Act, 1997 (FSCO Act) with a legislative mandate set out in the FSCO Act.
FSCO’s legislative mandate is to provide regulatory services that protect the public interest and enhance public confidence in the sectors it regulates.
FSCO regulates the insurance sector; pension plans; loan and trust companies; credit unions and caisses populaires; the mortgage brokering sector; co-operative corporations in Ontario; and service providers who invoice auto insurers for statutory accident benefits claims. FSCO is accountable to the Minister of Finance.
In order to support FSCO’s legislative mandate, the FSCO Act sets out a three-part structure for FSCO, which includes the Commission; the Superintendent of Financial Services and Staff; and the Financial Services Tribunal (Tribunal).