FSRA Auto Insurance Stakeholder Advisory Committee meeting with FSRA management

Summary of the meeting held on October 24, 2024, in person at 25 Sheppard Avenue West and virtually

Stakeholder Advisory Committee members present:

Amanda Dean – Insurance Bureau of Canada (IBC)
Brad Neilson – Intact Financial Corporation
Chris Floyd – Ontario Teachers Insurance Plan (OTIP)/RAEO Insurance Brokers Inc. and Orbit Insurance Service
Craig Bran – Co-operators Group
Donald Kunkel – Lifemark Health Group
Donna Ince – Definity Financial Corporation
Faith Kaplan – Kaplan and Levitt Psychologists
Laurie Davis –    Ontario Rehab Alliance
Melissa Rai –    Desjardins
Sarah Hutchison – Ontario Physiotherapy Association
Tyler Kroetsch    – Farm Mutual Re

Management members present:

Glen Padassery – Executive Vice President, Policy/ Executive Vice President, Auto Insurance
Huston Loke – Executive Vice President, Market Conduct
Paul Reid – Chief Financial Officer
Chris Georgakopoulos – Director, Auto Policy
Jonas Schwab-Pflug – Senior Manager, Auto Reform, Policy
Melissa Grover – Senior Manager, Auto Strategy, Policy
Haafiz Alibhai – Senior Policy & Technical Lead
Shamaila Mian – Senior Policy & Technical Lead
Eugene Shmeilin – Senior Policy Analyst
Cong Wang – Chief Actuary, Auto Insurance Operational Risk Supervision, Auto Insurance Products
Michelle Dodokin – Head, Auto Insurance Supervision, Auto Insurance Products
Nada Fraij – Director, Product, Ratings and Underwriting, Auto Insurance Products
Jason Harris – Director, Legal for Policy and Rule Making, Legal and Enforcement
Erica Hiemstra – Head, Insurance Conduct
Beata Morris – Director, Market Conduct – P&C Insurance
Miki Amakawa – Director, Market Conduct – P&C Insurance
Stevie Madder – Senior Manager, Market Conduct – P&C Insurance
Jacqueline Tse – Senior Manager, Market Conduct – P&C Insurance
Kevin Liu – Technical Lead, Market Conduct – P&C Insurance
Saad Opal – Senior Manager, Products and Approvals, Auto Insurance Products
Carley Bellissimo – Senior Advisor, Communications
Nicole Sherwin – Communications Officer
Meghan Kilty – Chief Public Affairs Officer

Welcome and general comments:

FSRA welcomed the Auto Insurance Stakeholder Advisory Committee (Committee) and provided opening remarks highlighting the importance and role of the Committee. The Committee serves as a consultative body, with FSRA seeking their input on Health Service Provider (HSP) and Automobile Insurance sector related issues, FSRA priorities and other initiatives or activities involving FSRA, including the content of current consultations.

Confidentiality and open transparent dialogue are an important function of the relationship between FSRA and the Committee. It is important for FSRA to hear a diversity of views from the Committee, as the conversation is what matters rather than seeking a consensus view on any one position or issue.

Proposed FY2025/26 Auto Insurance priorities and financial plan

FSRA shared its proposed 2025/26 statement of priorities and budget, which will be released in November for public consultation. The 2025/26 Auto Insurance Priorities carried over from last fiscal year are now in the implementation stage (Priorities 4.1 to 4.3). Committee members highlighted additional environmental trends impacting their sector, including declining interest rates and tow truck rate changes.

HSP/Auto Supervision updates

FSRA provided the Committee with an overview of its HSP Supervision Plan and noted it intends to publish the HSP Supervision Plan the coming months.

FSRA also noted that its inaugural Auto Supervision Plan (published December 2023) sets out key areas of supervision for insurers, addressing key areas that are important to consumer protection such as sales and distribution, underwriting, and policy servicing. Supervision began January 2024 and will continue for 15 months. FSRA intends to issue a report which details the outcome of the efforts of the Auto Supervision Plan once it has concluded. A Committee member thanked FSRA for this initiative.

Supervisory model for Rating and Underwriting

FSRA provided an overview of Chapters 1-3 of its new Auto Insurance Rating and Underwriting Supervision Guidance, which are currently out for consultation (consultation closes November 16, 2024). The approach taken in the Supervision Guidance provides benefits to both consumers and industry. There are four chapters in the Guidance. Chapter 4 will be published for consultation in January 2025. Committee members congratulated FSRA on establishing its principles-based approach.

Auto reform

FSRA is leading three auto reform reviews on health service provider guidelines and frameworks (i.e. SABS, HCAI and HSP), and has developed consultation papers for each of its three reviews (consultation closes November 29, 2024). A webinar and targeted consultations have been planned for the week of November 4, 2024.

Member agenda items

The Committee raised several important issues, including FSRA’s Fraud Reporting Service (FRS), Auto Theft, Towing and Storage, Medical Assessments/Fee Caps on Insurer Examinations, Bundling of optional SABS benefits, the Risk Sharing Pool (RSP), the Take-All-Comers requirement, and FSRA’s Territory Rating Test and Learn Environment.

FSRA closed the meeting by thanking the Committee for their time, expertise, and commitment.