Take-All-Comers information for Consumers | Financial Services Regulatory Authority of Ontario

Auto insurance is necessary to operate a vehicle in Ontario and FSRA is taking steps to ensure that all consumers can get the best product at the best price available when they purchase or renew their auto insurance policy.

FSRA recently issued “Take-All-Comers” guidance to the industry to help prevent activities that preclude or frustrate consumers efforts to purchase or renew their auto insurance when they would otherwise qualify for a quote or renewal.

Specific consumer protections of the “Take-All-Comers” rule include:

insurers are required to offer the lowest rate available for each consumer’s circumstances
insurers are required to offer their customer a renewal if that customer continues to meet that insurer’s eligibility rules
insurers must accept all auto insurance business from consumers that meets their approved rules

Specific examples of Insurer non-compliance identified by FSRA include, but are not limited to, avoiding issuing automobile insurance quotes to individuals who:

experienced a prior accident benefits loss, including individuals who were not at fault for the prior accident such as passengers and pedestrians
were not purchasing a property policy (e.g. homeowners insurance)
reside in certain Ontario municipalities
had less than one year of history as an insured under an automobile insurance policy in Canada

If the “Take-All-Comers” rule is violated FSRA can take a variety of regulatory enforcement actions, depending on the nature and severity of the non-compliance.

Actions consumers can take if they think they are being treated unfairly

If an insurer is not responding, delaying or requesting additional information without explanation, consumers should document the exchange, elevate to the insurer’s ombudsperson and report the issue to FSRA. If the insurer doesn’t provide a prompt response to the consumer, FSRA will investigate and determine the appropriate response.

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Public consultation:

As part of the “Take-All Comers” review, FSRA held public consultations in March 2020. It received comments and submissions from consumers and members of the auto insurance industry, including brokers, insurance companies and trade associations. They brought forth valuable insight about current practices and recommendations to further protect Ontario’s auto insurance consumers.

FSRA also met with FSRA’s Resident’s Reference Panel as part of a broader engagement with consumers on auto insurance.

Through these public consultation and examinations FSRA identified several activities that may contravene the “Take-All-Comers” rule, such as:

failing to offer a renewal to qualifying customers, including customers who have not missed a single premium installment payment
requiring the completion of written applications from customers for reasons that cannot be characterized as exceptional and warranted by the risk presented
withdrawing underwriting authority of brokers and agents while failing to respond to qualifying customers’ quote requests in a commercially reasonable period of time
refusing to quote or renew for reasons not listed in the insurer’s approved underwriting rules on file with FSRA

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The Insurance Act has consumer protection features supported by specific legal requirements. It seeks to ensure eligible consumers can buy or renew an auto insurance policy at the approved terms and price. When taken together, these consumer protection features comprise Ontario’s “Take All Comers” rule.

Insurers, agents and brokers have legal obligations to:

provide consumers the lowest rate available
offer all eligible consumers a quote or a renewal
accept all auto insurance business from consumers that meets Insurers’ approved rules

A delay in providing a quote is effectively declining coverage and can only be done on FSRA approved declination grounds.

FSRA is committed to strengthening consumer protection related to auto insurance by ensuring availability, enforcing regulatory oversight and achieving regulatory efficiency. FSRA is working to ensure consumer harm is identified and quickly remedied, and if appropriate, taking enforcement actions against those who breach the “Take-All-Comers” rule.

FSRA initiated its work on the “Take-All-Comers” rule in the Ontario auto insurance sector as part of FSRA’s 2019-22 inaugural Annual Business Plan. Following public consultations FSRA carried out examinations of selected insurers, agents and brokers and has now expanded the scope of its work to include a Thematic Review of Take-All-Comers.

FSRA’s review is ongoing and will Identify practices in the auto insurance system that are inconsistent with the “Take-All-Comers” rule and its intended purpose.

Following public consultations, and as part of an overall effort to strengthen compliance standards, FSRA carried out examinations of selected insurers, agents and brokers. Additionally, the “Take-All-Comers” guidance is being released to reiterate to insurers, agents and brokers their existing obligations with respect to compliance with the “Take-All-Comers” rule.

FSRA will also be requiring all insurers to review their current practices to ensure compliance with the law, report any “Take-All-Comers” rule breaches and develop a remediation plan.

FSRA has been made aware of the existence of a number of practices in the market which contravene the “Take-All-Comers” rule. Specific examples of Insurer non-compliance identified by FSRA include, but are not limited to, avoiding issuing automobile insurance quotes to individuals who:

experienced a prior accident benefits loss, including individuals who were not at fault for the prior accident such as passengers and pedestrians
were not purchasing a property policy (e.g. homeowners insurance)
reside in certain Ontario municipalities
had less than one year of history as an insured under an automobile insurance policy in Canada

FSRA can take a variety of regulatory enforcement actions, depending on the nature and severity of the non-compliance. Reponses to misconduct can range from education and remediation action to regulatory intervention, which includes administrative monetary penalties , as well as other sanctions such as license revocation, conditional licenses or compliance orders, in order to influence marketplace behaviour.