The Territories TLE is open for rate filing applications from regulated auto insurers.

A FSRA review of the Territory Rating bulletin highlighted an opportunity to modernize the current approach to territory ratings. In response, the Territories TLE was launched to allow for new and more innovative methods for designing territories and determining rates.

TLEs are a critical component of FSRA’s pursuit of responsible innovation and provide a safe testing environment for assessing the market’s response to innovation while ensuring consumers are protected through built-in regulatory guardrails.

The Territories TLE is an opportunity for auto insurers to propose and test territory rating changes within the Greater Toronto Area (GTA) for Private Passenger Vehicles (PPA) over a minimum two-year period. In turn, this initiative will also allow FSRA to proactively monitor the impact of territory rating changes and ensure intended consumer outcomes are achieved.

FSRA’s role is to facilitate innovation while managing risk to consumers. In alignment with FSRA’s Innovation Framework, this activity-based TLE is a proactive 'inside-out' examination of our regulatory frameworks that leverages expertise across FSRA to enable innovation-friendly regulating. This innovation opportunity has been assessed using the standardized Innovation Process and five-step Risk Assessment (per FSRA’s Innovation Framework). It has been determined that testing and validation through the TLE is appropriate to evaluate the anticipated consumer benefits and monitor the impacts and intended outcomes. In taking this approach, FSRA has established the terms and conditions and testing plan requirements in the Territory Filing Specifications.

How do auto insurers apply?

Interested auto insurers will need to apply through the usual rate filing application process (Private Passenger Automobile Filing Guidelines - Major).

Please note: auto insurers who opt to participate in FSRA’s Territories TLE will be able to submit applications for territory rating changes that do not adhere to the territory rating specifications outlined in the Private Passenger Automobile Filing Guidelines - Major, with approval being subject to FSRA’s discretion.

What are FSRA’s expectations in the Territories TLE Applications?

Auto insurers are expected to demonstrate:

  • increased accountability for managing the consumer experience
  • enhanced communications with consumers for greater transparency and interpretability
  • consideration of fairness in terms of consumer outcomes in addition to actuarial soundness

Please note: Rule 2022-001, Part 10 – Innovation Office fees will not apply to the Territories TLE.

Exiting the Territories TLE

Auto insurers who voluntarily exit the Territories TLE or are requested by FSRA to do so must file changes using the Private Passenger Automobile Filing Guidelines - Major. Auto insurers exiting the Territories TLE are accountable for managing their customer experience and associated consumer impacts. Auto insurers are also expected to communicate their plans and the resulting impacts to FSRA.

Subsequent data collection to validate TLE testing criteria

Following auto insurers’ entry into the Territories TLE, FSRA will gather data and evidence to evaluate the outcomes resulting from territory rating changes over the testing period. This evaluation includes examining shifts in quote volume, new business volume, retention rates, improved rating accuracy, and reduced subsidization, among other criteria.

Approved applicants

FSRA has approved 10 applications for its Territory Test and Learn Environment. These applicants cover over 40% of Ontario's Private Passenger Auto insurance market.

Participating insurers are proposing innovative ways to use territories to help calculate auto insurance rates. For example, insurers have proposed new ways to group territories to improve the accuracy of rates, reduce subsidization, and equalize rates in neighbouring areas. Insurers are also using external data such as weather, traffic, and road conditions to better understand how these factors affect claims costs in different areas. Additionally, insurers proposed various approaches to identify and assess potential unfair discrimination to ensure rates are fair for consumers.

The following auto insurers are approved for the Territories TLE. Territory definition and rating changes will be implemented on or after July 2, 2024, regardless of when the applicant received FSRA’s approval.

  • Aviva Insurance Company, Aviva – Approved on April 22, 2024
  • S&Y Insurance Company, Aviva – Approved on May 2, 2024
  • Traders General Insurance Company, Aviva – Approved on May 2, 2024
  • Aviva General Insurance Company, Aviva – Approved on May 2, 2024
  • TD General Insurance Company, TD – Approved on May 8, 2024
  • Primmum Insurance Company, TD – Approved on May 8, 2024
  • Security National Insurance Company, TD – Approved on May 8, 2024
  • Belair Insurance Company Inc, Intact – Approved on May 24, 2024
  • Intact Insurance Company, Intact - Approved on May 24, 2024
  • Dominion of Canada General Insurance Company (The) – Approved on June 17, 2024

Learn more about approved rate changes for every auto insurer in Ontario through the rate approvals database.