Consultation on proposed Automobile Insurance Rating and Underwriting Supervision Guidance

Ontario’s financial services regulator, FSRA, puts consumers first with its Automobile Insurance Rating and Underwriting Regulation Reform Strategy. It is designed to increase consumer fairness and transparency, promote innovation and market health.

As a part of this strategy, FRSA is now consulting on new guidance to ensure that Ontario drivers are paying the right price for the right auto insurance coverage. This guidance will help support FSRA in being dynamic, principles-based and outcomes focused in the auto insurance sector.

The proposed approach promotes greater transparency of the factors that influence auto insurance rates, helping consumers make informed choices about their insurance. FSRA’s approach focuses on improved rating accuracy and strong consumer protection measures.

For insurers, the proposed guidance promotes a strong, dynamic and responsive insurance market in Ontario, that provides flexibility and encourages innovation, while keeping consumer protection at the forefront.

FSRA is consulting on the first three chapters of the proposed Guidance, which includes:

1. Fair Consumer Outcomes:

   This chapter establishes clear principles and defines fair consumer outcomes. Insurers will be accountable for setting fair rates that are accurate and taking steps to mitigate the risk of unfair discrimination and bias. Additionally, consumers will have access to clear, transparent information about how these rates are determined.

2. Automobile Insurance Rating and Underwriting Operations, Controls and Governance:

   This chapter describes FSRA’s expectations on high standards for governance and operational practices for rating and underwriting. FSRA will evaluate these practices in terms of their alignment with fair consumer outcomes.

3. Accreditation, Proactive Supervision and Assessment Approach Guidance:

   This chapter describes FSRA’s process for evaluating insurers against the practices set out in Chapter 2. Insurers that demonstrate sound practices in these areas may be accredited and have access to greater flexibility around certain filing requirements.

The consultation period for the first three chapters of the proposed guidance is now open and will close on November 15, 2024. FSRA invites stakeholders to review the proposed guidance and submit their feedback.

FSRA will publicly consult on the fourth, and final, chapter of this guidance in 2025, which outlines our new filing approach.

Learn More

• Proposed Automobile Insurance Rating and Underwriting Supervision Guidance

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.

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