Helping consumers get access to auto insurance rates that are fair and reasonable
To help consumers get access to auto insurance rates that are fair and reasonable, Ontario’s financial services regulator (FSRA) is releasing its annual review guidance and benchmarks.
FSRA uses these benchmarks to review an insurance company’s proposed rate changes and evaluate developments and trends within the auto insurance industry.
New this year:
- Auto theft, anti-theft solutions and related surcharges: To prevent losses related to auto theft, some insurers are encouraging consumers to use anti-theft devices and are implementing surcharges for high-risk vehicles. FSRA outlines approaches to achieve a balance between providing accessible coverage and preventing auto theft losses.
- Use of capping: FSRA encourages the use of positive capping to protect consumers from significant rate increases. However, some capping practices, like negative capping, are not permitted.
- Rating by gender: In 2017, Ontario driver’s licenses were updated to include expanded gender identities, including Gender X. Insurers are expected to reflect these changes into their policies and procedures before January 1, 2026.
- The use of credit information in auto pricing: Insurers are prohibited from using credit information including credit history or credit rating as factors in the cost of auto insurance premiums under the UDAP rule.
FSRA continues to evaluate and enhance its processes to achieve regulatory efficiency and effectiveness. FSRA will continue to consult annually and update its benchmarks twice a year.
Learn more:
FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone.
Learn more at www.fsrao.ca.
Guidance