FSRA is implementing an Auto Rates and Underwriting Regulation Reform Strategy (ARURR) to ensure every driver is treated fairly, given clear and accessible information, and can find the right coverage at the right price.
The new strategy will help address challenges consumers have faced when purchasing auto insurance. It focuses on three priority areas that will improve the consumer experience and support a fair, competitive marketplace.
Putting consumers first
FSRA’s areas of focus are grounded in clear principles: accurate pricing, accessible products and pricing, cost mitigation, and consumer transparency.
Fair rating and underwriting: to ensure consumers have access to fair auto insurance rates.
Key Initiatives:
- Rating and Underwriting model: The Automobile Insurance Rating and Underwriting Guidance ensures consumers have access to fair pricing, appropriate coverages, and clear and transparent communication from insurers.
- Enhanced Fraud Reporting: FSRA’s Fraud Reporting Service Rule and Guidance will require auto insurers to provide specific auto fraud information to FSRA, allowing FSRA to better determine the amount of fraud in the province.
Creating a dynamic Auto Insurance marketplace: by removing barriers to market entry, fostering innovation, and ensuring value for money, consumers will have access to a dynamic marketplace offering value and choice.
Key initiatives:
- Testing Territory Rating: FSRA’s Test and Learn Environment (TLE) on territory rating is fostering innovation by allowing participating insurers to propose and test new territory rating methods in the Greater Toronto Area for two years.
Informed decision-making: Putting consumers in the driver’s seat with enhanced transparency, consumers will have access to the information needed to understand auto insurance coverages and make informed decisions.
FSRA’s new model emphasizes the importance of transparency in helping consumers understand their auto insurance coverage and options. Transparency is a key consideration when FSRA reviews rate filings, and insurers are expected to provide clear, accessible information so consumers can make well-informed choices.
Key initiatives:
- Empowering consumers: FSRA’s Regulator Rate Ranger is an online tool that provides Ontarians with an estimate range of costs to insure their vehicle.
These initiatives aim to create an auto insurance system in Ontario that is fair, transparent, innovative, and puts consumers first.