ID
2024-010

Type
Policy
Sector
Auto Insurance
Status
Public comment closed
Date
Comment Due Date

Thank you for providing your feedback on FSRA’s proposed Guidance on proposed Automobile Insurance Rating and Underwriting Supervision.

The request for submissions is now closed.

We appreciate the comments and questions received to date and look forward to sharing with you the final Guidance. Stay up to date on Guidance releases on our newsroom. Follow us on LinkedIn and subscribe to our mailing list for quick updates.

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

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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Before we begin, please make sure you do not include any personal or private financial information. If your inquiry does require this information be shared with us, please call us at 1-800-668-0128 or email us at [email protected] for instructions.

By submitting your content, you agree to have your materials posted on our engagement portal, used in reports and other materials prepared by Financial Services Regulatory Authority of Ontario (FSRA) that may be shared with the public. Content is moderated so that all posts are respectful and professional. The Freedom of Information and Protection of Privacy Act, R.S.O. 1990, c.F.31, applies to all online content.

Sector Comment Date posted
[2024-010] David Adams - Global Automakers of Canada
Please find attached the Global Automakers of Canada response to FSRA Consultation 2024-010
[2024-010] FAIR
FAIR (Fair Association of Victims for Accident Insurance Reform) is a grassroots not-for-profit organization of car crash survivors and their supporters. We are the end-users of the auto insurance product.

Our comments are limited to the FSRA’s stated goal of “fair consumer outcomes” as this is mentioned 48 times throughout the document.

The term “outcomes” presumes that this is a metric that has been measured and the insurance Ontario drivers purchase is graded for quality. That isn’t the case on the ground for Ontario’s claimants.

It isn’t ensuring financial safety, fairness, and choice for everyone if only some claimants can access the recovery resources such as treatment and rehabilitation they need for recovery and a return to work.

We would point out that the fair treatment of consumers starts with acknowledging and investigating the existing problems with the insurer– client relationship once a claim has been made. It’s not just about cost at the purchase point – it’s about value and the promise of coverage.

The Tribunals Ontario 2022-23 Annual Report reveals that 13,983 injured car crash survivors applied for a hearing at the License Appeal Tribunal (LAT) because they weren’t getting what they needed or what they paid for.

Consumers should be concerned that insurers are not acting in good faith or are behaving in a way that causes consumers to have a reasonable apprehension of bias because the system has put few curbs or disincentives in the system to deter insurers from behaving badly.

The recent revelations from the Ontario Trial Lawyers Association (OTLA) regarding the urgent need for a review of the Licence Appeal Tribunal amplifies our concern that Ontario’s vulnerable patients/claimants have their access to benefits and medical care unfairly curtailed in a failing insurer driven justice model. The OTLA/inHealth data paints a picture of despair for claimants who find themselves in an adversarial and complicated system where “out of the 4,500 decisions made by the LAT, self-represented individuals have succeeded only 33 times”. The data shows claimants are only successful at LAT hearings 10% of the time and this should be a red flag for a lack of fairness. It is simply unbelievable that 90% of unpaid and injured claimants are wrong about what they are entitled to. This isn’t just the insurers not acting in good faith during the claims process; this is the auto insurance system, from start to finish, not acting in good faith.

If the goal of fair consumer outcomes is to be met it will have to start with FSRA bringing all of the stakeholders together; The Minister of Finance, the Minister of Health, the Minister of the Attorney General and the LAT, the Regulatory Colleges, and the insurers must all agree that their points of contact with claimants in the current system will focus on the fair treatment of this vulnerable group of consumers.

FSRA must take the long view and focus on the measurable outcomes for consumers, gather that information, and set in motion the steps for accountability to protect claimants to foster the fair treatment of consumers.

FAIR Association of Victims for Accident Insurance Reform

Tribunals Ontario 2022-23 Annual Report
https://tribunalsontario.ca/documents/TO/Tribunals_Ontario_2022-2023_Annual_Report.html#lat

OTLA pushes for urgent Licence Appeal Tribunal review
https://www.lawtimesnews.com/practice-areas/personal-injury/otla-pushes-for-urgent-licence-appeal-tribunal-review/389679
[2024-010] Jennifer Steeves - Canadian Vehicle Manufacturers' Association
On behalf of Brian Kingston, President & CEO of the Canadian Vehicle Manufacturers' Association and our member companies including Ford Motor Company of Canada, Limited, General Motors of Canada Company and Stellantis (FCA Canada Inc.), please find enclosed our response to the Consultation on Proposed Automobile Insurance Rating and Underwriting Supervision Guidance.
A confirmation of receipt is kindly requested.
Auto Insurance
[2024-010] Catherine Allman - Canadian Association of Direct Relationship Insurers
Please find attached CADRI's support of and recommendations for improvement to the Guidance.
Health Service Providers
[2024-010] Ralph Palumbo - On behalf of the Ontario Psychological Association
Please find attached the submission of the Ontario Psychological Association (OPA) on the FSRA Consultation on Proposed Guidance on Automobile Insurance
Rating and Underwriting Supervision Guidance.

Regards,

Ralph
Property and Casualty and General Insurance
[2024-010] Sarah Fong - Travelers Canada
Property and Casualty and General Insurance
[2024-010] Amanda Dean - Insurance Bureau of Canada
Good Afternoon,

Thank you for providing the Insurance Bureau of Canada with the opportunity to comment on the consultation. IBC's response is attached.

Thank you,

Amanda Dean
Auto Insurance
[2024-010] Matt Di Maio - Ontario Trial Lawyers Association (OTLA)
Please find OTLA's submission attached. Do not hesitate to contact us if you require additional information.
Property and Casualty and General Insurance
[2024-010] John Taylor - Ontario Mutual Insurance Association
Please find attached the Ontario Mutual Insurance Association's submission.
Health Service Providers
[2024-010] Laurie Davis - Ontario Rehab Alliance
To Whom It May Concern,

The Ontario Rehab Alliance is submitting our comments regarding the FSRA Consultation on Proposed Guidance on Automobile Insurance Rating and Underwriting Supervision Guidance.

We welcome the opportunity to further discuss this issue with you and can be reached via email at [email protected] or [email protected].

Sincerely,
Laurie Davis
Executive Director
Ontario Rehab Alliance
Auto Insurance
[2024-010] Olivier Côté - Université Laval
The authors of this letters are Arthur Charpentier, Agathe Fernandes Machado from Université du Québec
à Montréal, Marie-Pier Côté and Olivier Côté from Université Laval (Québec).
Auto Insurance
[2024-010] Karin Ots - Aviva
Please find attached Aviva's submission. Thank you.
[2024-010] Brent Ravelle - CarRx Canada
Please find our company‘s attached briefing to FSRA on consumer insurance transparency.
[2024-010] Huw Williams - Canadian Automobile Dealers Association
The Canadian Automobile Dealers Association (CADA) is the national association for franchised automobile dealerships that sell new cars and trucks. Our over 3,500 dealers represent a key sector of Canada's economy. Through our independently owned and operated dealers, we are represented in nearly every community in Canada and collectively employ over 170,000 people across the country. CADA dealerships represent some 30 brands sold through the franchise system in Canada.

Auto Insurance
[2024-010] Ryan Stein - Definity Insurance
Good afternoon,
Thank you for the opportunity to participate in this consultation. Here is Definity's response.
Have a great day,
Ryan
[2024-010] KEN ARGUE
It is still surprising that owners of cars with serious safety recalls outstanding can be insured and licensed.

Provincial licensing authorities and insurance companies should be working together and searching through readily available manufacturers databases for outstanding serious recalls before renewing licensing and insurance.
Upon discovery of any outstanding recall(s), car owners could be notified by mail, e-mall or by other means, say 90 days before expiry of licenses and insurance, of outstanding recalls and a reminder that these must be completed before licenses or insurance can be renewed. This may include temporary granting of licenses and insurance when there is a shortage of parts to repair vehicles as indicated by various manufacturers. This may also include having the car parked, license and insurance suspended, until such time as the manufacturer can provide the correct part in the most serious of recall cases. Re-sellers of cars should also be required to notify prospective buyers of any outstanding recalls.
This is worthy of serious consideration by both provincial governments and insurance companies.

Ken Argue
Auto Insurance
[2024-010] ARIFUR RAHMAN - n/a
I lived in the US (new Jersey) and in Ontario same amount of time (more than 10 years). I received my license in NJ when I was 25 years old. As a young driver I had minor infraction and tickets when I started driving. That time my insurance was as high as 200 a month. Then over time my driving got better and with my record I was able to reduce my insurance to 90 a month from Geico. After moving to Canada since 2012 I have not had a single ticket, no accidents, no claims. Even I did my driving habit to get 20% discount once, yet my insurance was never less than 200 a month even for collision only coverage. And every year the insurance keep getting increased faster than my salary gets increase. Now, I have always asked the question why my insurance is going up? The answer always "its not you, it is over all industry cost rising and your area, you are getting a rewarding rate for your driving record". I do not see how that is being addressed in the proposal as the rate keeps growing every year and my risk profile is going down every year (age, family, driving history and habit etc.). Insurance companies make billions of dollar profit from insurer's money and when it comes to giving good rates to clients they fail because of 'risk' factors. There is seriously an issue in their mentality. I personally think people should get tax break for paying keeping their insurances as well. That will offset some costs back to the people. The government can then get the benefit portion returned to them by the license provider so that those companies can't play with the insurers.
Date posted Sector Question and response
Auto Insurance

Question: Im being denyed benifits.

Im paying for it.
Can it be redused.

FSRA response:

Thank you for your inquiry. Claims handling is out of scope for this guidance consultation. You can file a complaint to FSRA, or reach out to our Contact Centre for assistance.