Toronto, ON (Apr. 27, 2016) – The Financial Services Commission of Ontario (FSCO) reviews filings from insurers for all rate changes in auto insurance. This is a summary of the results of rates approved or ordered in the first quarter of 2016.
Automobile insurance reforms were enacted by the government to reduce costs and fraud in the auto insurance system. Effective June 1, 2016, these changes include reductions to the compulsory standard Accident Benefits coverage, with the continued ability for consumers to buy enhanced optional benefits. Changes also included a prohibition on rating for certain minor accidents that occur on or after June 1, 2016. Insurers were required to submit automobile insurance reform filings to FSCO by October 30, 2015 to reflect these changes; hence they are included in these reviews.
FSCO approved 50 private passenger automobile insurance rate filings during the first quarter of 2016. All 50 filings were automobile insurance reform filings. A total of 50 insurers submitted the filings.
These 50 insurers represent 83.36% of the market based on premium volume. Approved rates decreased on average by 3.07% when applied across the total market. Rate changes approved for each insurer this quarter and effective dates of the rate changes can be seen by following the link below. In the fourth quarter of 2015, there was a decrease of 0.15% on average.
The rate change shown for each insurance company is the average for that company, based on all the drivers it insures. Obviously any given policyholder may experience a rate change that is either higher or lower than the industry-wide average rate change, or the average rate change for a particular insurer, depending on several factors.
For more details, refer to Auto Insurance Rates for the First Quarter of 2016 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).