The Financial Services Regulatory Authority announced that Ontario auto insurers reported that Ontario consumers are receiving $685M in total premium relief in the form of premium deferrals, rebates, refunds, rate reductions and other means during the COVID-19 emergency.

Ontario insurance companies began offering relief measures since the emergency began, particularly for customers seeking payment relief due to job loss or other reasons so their insurance coverage could continue. Many insurers responded by sending more than a quarter billion dollars back to Ontario auto insurance consumers in rebates and rate reductions.

FSRA issued a consumer relief survey to Ontario auto insurance companies to determine the amount and type of relief being provided to Ontario drivers. Survey results showed that Ontario auto insurance consumers received $220M in total premium relief from March 1 – April 30, with an additional $465M in planned relief from May 1 onward.

This $685M represents consumer relief equal to 4.9% of annual premiums benefiting 70% of Ontario auto insurance customers. However, there are divergent levels of relief being provided by insurers. A graph showing relief provided by Ontario’s 14 major insurers representing over 95% of the Ontario market is available. FSRA is continuing to assess the appropriateness of the relief provided. 

As the economy begins to re-open, FSRA is monitoring how insurers are responding and working to ensure Ontario consumers are being treated fairly by encouraging insurers to offer their customers all available forms of relief that give credit for less driving and lower loss claim costs.

To assist FSRA in considering whether auto insurance rates are just and reasonable during the COVID-19 disruption, FSRA plans to conduct a follow-up survey in July 2020 to assess the consumer relief provided to the end of June. Company and industry wide consumer relief results may be made public following analysis and evaluation.

News Release

FSRA Encourages Ontario's Auto Insurers to Explore Further Relief Measures as a COVID-19 Continues to Impact Consumers

More Information

Ontario Consumers who have questions about their insurance provider’s approach to relief are encouraged to contact their Broker, Agent or Insurance Company.

To learn more about how FSRA is supporting the public interest in the sectors that it regulates during the COVID-19 Outbreak, please visit: FSRA Announces Changes to Regulatory Requirements due to COVID-19.

If you have any questions or need more information, contact us at contactcentre@fsrao.ca.
 

Image Descriptions

Consumer Relief Provided by Ontario Auto Insurers

Overall Impact
Total Relief: $685M
Average savings for consumers (for consumers benefiting from relief): $150
70% of 6.6M policies are benefiting from relief measures

Timelines for Relief
Premium relief (March 1 - April 30): $220M
plus
Future premium relief: $465M

Total Relief by Type
Rebates and rate reductions: $275M
plus
Other relief: $410M (inludes other consumer relief such as: premium deferrals, waiving NSF fees, re-rating a policy for reduced driving information, removing coverages, etc.)

Top 14 Insurers, measured by 2019 Premium Volume > $200 Million

% of Policies Benefiting from Relief Initiatives, Premium Relief Measures as % of 2019 Premium 

The information below represents the dots in the chart from top to bottom:

100% of policies are benefitting from relief initiatives
14.2% 2019 premiums estimated to be returned as consumer relief

89% of policies are benefitting from relief initiatives
9.3% 2019 premiums estimated to be returned as consumer relief

60% of policies are benefitting from relief initiatives
6.1% 2019 premiums estimated to be returned as consumer relief

59% of policies are benefitting from relief initiatives
5.1% 2019 premiums estimated to be returned as consumer relief

43% of policies are benefitting from relief initiatives
4.8% 2019 premiums estimated to be returned as consumer relief

100% of policies are benefitting from relief initiatives
4.5% 2019 premiums estimated to be returned as consumer relief

93% of policies are benefitting from relief initiatives
4.5% 2019 premiums estimated to be returned as consumer relief

53% of policies are benefitting from relief initiatives
4.2% 2019 premiums estimated to be returned as consumer relief

94% of policies are benefitting from relief initiatives
3.6% 2019 premiums estimated to be returned as consumer relief

74% of policies are benefitting from relief initiatives
3.5% 2019 premiums estimated to be returned as consumer relief

100% of policies are benefitting from relief initiatives
3.4% 2019 premiums estimated to be returned as consumer relief

36 % of policies are benefitting from relief initiatives
3.3% 2019 premiums estimated to be returned as consumer relief

37% of policies are benefitting from relief initiatives
2.5% 2019 premiums estimated to be returned as consumer relief

90% of policies are benefitting from relief initiatives
1.9% 2019 premiums estimated to be returned as consumer relief

All insurer average relief is 4.9%.