Consultation on chapter four of the proposed Automobile Insurance Rating and Underwriting Supervision Guidance

Ontario’s financial services regulator (FSRA) is committed to ensuring Ontario drivers are paying the right price for the right auto insurance coverage.

As part of this initiative, FSRA is now seeking feedback on the final chapter of its proposed Automobile Insurance Rating and Underwriting Supervision Guidance. This chapter of the guidance outlines FSRA’s new principles-based approach for reviewing auto insurance product, rate and underwriting filing.

The chapter introduces two new filing streams for insurers: fast track and prior approval. Accredited insurers who consistently demonstrate adherence to FSRA’s fair consumer outcomes will benefit from streamlined processes for certain types of filings.

The new supervisory model enhances oversight of industry rating and underwriting practices, holding insurers to higher standards of accountability. It aligns with FSRA’s principles to ensure fair outcomes for consumers.

The proposed guidance aims to increase transparency around the factors influencing auto insurance rates, empowering consumers to make informed decisions. It emphasizes improved rating accuracy and robust consumer protection measures.

For insurers, the guidance fosters a dynamic and responsive insurance market in Ontario. It encourages innovation and flexibility while maintaining a strong focus on consumer protection.

The consultation period for the fourth chapter is now open and will close on February 10, 2025. FSRA encourages stakeholders to review the proposed guidance and submit their feedback.

Learn more:

• Chapter four of the proposed Automobile Insurance Rating and Underwriting Supervision Guidance

The content in these submissions reflects feedback from stakeholders and has not been verified or validated by FSRA. FSRA does not endorse or guarantee the accuracy of the statements made.