Auto insurance is compulsory for Ontario’s more than 10 million drivers, which makes it important that all consumers have fair access to insurance. Ontario’s law has a “Take-All-Comers” requirement that protects consumers’ ability to purchase auto insurance. Take-All-Comers means insurers are obligated by law to accept business from all consumers who meet their FSRA-approved underwriting rules.
Early in our mandate as the new regulator, the Financial Services Regulatory Authority of Ontario (FSRA) became aware of certain business practices being used which appeared to contravene Take-All-Comers. FSRA undertook a review of Take-All-Comers, which confirmed that there was intentional non-compliance industry-wide. Instead of filing new underwriting rules for approval by FSRA, insurers chose to engage in non-transparent and illegal practices that made it more difficult for certain types of consumers to get auto insurance quotes. This systemic non-compliance led to consumer harms, unfair competition, and diminished market health. FSRA responded by taking action to restore compliance and consumer trust in the system.
FSRA undertook a multi-phased policy and supervisory approach to address non-compliance across the market. Our approach included:
- direct engagement with insurance executives to discuss regulatory expectations and Take-All-Comers requirements
- conducting interviews with brokerages, insurance brokers, and insurance agents, as well as with insurer representatives
- supervisory activities
- issuing Take-All-Comers Guidance
- issuing the Unfair or Deceptive Acts or Practices (UDAP) Rule
- active reporting and supervision
- FSRA also identified 1 insurer for enforcement action and continues to monitor the market to determine if there are others
FSRA is mandated to protect the rights of consumers by promoting high standards of business conduct and transparency within the financial services we regulate. This report describes the outcomes of FSRA’s Take-All-Comers compliance review, which will help us strengthen consumer protection related to auto insurance by ensuring availability, enhancing regulatory oversight, and achieving better market health.
 The main parts of the Take-All-Comers requirement are derived from sections 237 and 238 of the Insurance Act, and reflected by the sanctions in the Unfair or Deceptive Acts or Practices Rule (UDAP), which requires an insurer to file with FSRA the rules it will use to decline to issue, terminate, or refuse to continue coverage for auto insurance. This means that filed and approved underwriting rules are the only criteria that should be considered when deciding eligibility for an auto insurance policy. This requirement applies regardless of the channel that connects the consumer with the insurer or if the coverage relates to a new applicant or an existing policyholder. The UDAP Rule was amended June 1, 2023. The former UDAP Rule was effective April 1, 2022 – May 31, 2023.