Thank you to those who provided feedback on FSRA’s Take-All-Comers Consultation. This consultation is now closed, and all comments and submissions have been posted.

FSRA is committed to strengthening consumer protection related to auto insurance by ensuring availability, enforcing regulatory oversight and reducing regulatory burden. The Take-All-Comers Consultation received comments and submissions from consumers and members of the auto insurance industry, including brokers, insurance companies and trade associations, who brought forth valuable insight about current practices and recommendations to further protect Ontario’s auto insurance consumers.

FSRA’s administration of the regulatory regime includes the Take-All-Comers requirements, which was created to ensure that consumers have access to insurance by establishing certain “rules” that must be followed:

  • Insurers must offer a quote to all auto insurance consumers that meet their approved underwriting rules.
  • When consumers shop for auto insurance, insurers are required to offer the lowest rate available for each consumer’s circumstances.
  • Before an insurance policy expires, insurers are required to offer their customer a renewal if that customer continues to meet that insurer’s underwriting rules.

What FSRA heard:

FSRA heard from 25 brokers, five insurers, two industry groups, nine consumers, and one other stakeholder. Many brokers stated in their submissions that the existing process used by insurers for providing quotes and approving applications is often cumbersome, frustrating, and/or unfair. Examples of such practices include mandating unnecessary paperwork or using delay tactics in providing quotes or approving applications with the intent of discouraging or even in some cases making it practically impossible for customers from doing business with that insurer. Comments from consumers generally expressed frustration over rates and availability of coverage, and the lack of transparency around rates. Insurers and industry groups submitted comments regarding their processes around Take-All-Comers requirements, and a number of commentors made extensive recommendations addressing the regulatory framework for rate approval and Take-All-Comers.

The following instances of contraventions to the Take-All-Comers requirements have been noted in the submissions from brokers:

  • Withdrawing underwriting authority of brokers and agents
  • Failing to respond to requests for quotes from qualifying customers in a timely manner
  • Refusing to quote or renew for reasons not listed in the insurer’s approved underwriting rules
  • Failing to offer a renewal to qualifying customers including those who have missed a single payment
  • Requiring the completion of written applications from customers on a frequent basis and for reasons that cannot be characterized as exceptional and warranted by the risk presented

The following general themes were also identified under this consultation:

  • Lack of insurer regulatory oversight, monitoring/enforcement, or accountability
  • Ineffective and unnecessary regulation
  • Required legislative and regulatory changes, including amendments to Ontario Regulation 7/00 - Unfair Deceptive Acts or Practices (UDAP)
  • Support for Treating Customers Fairly framework rather than the current Take-All-Comers requirements

Next steps:

FSRA is currently conducting a review of the Take-All-Comers requirements and has partnered with the Registered Insurance Brokers of Ontario to explore issues with the way customers are treated. As part of the review, FSRA will be undertaking examinations of selected insurers chosen to ensure a representative sample of Ontario’s auto insurance market.

FSRA will review opportunities to address the concerns raised to ensure customers are treated fairly and access to affordable insurance is not impaired by misconduct in the auto insurance marketplace.

#Disclaimer: After a full review of the submissions to the Take-All-Comers consultation, all names, company names and sensitive information from the original comments and questions have been removed.

All submissions