FSRA has Removed UBI Guidance to Allow More Competition and Innovation in the Auto Insurance Market
The Financial Services Regulatory Authority of Ontario (FSRA) is enabling the introduction of more flexible and innovative Usage Based Insurance (UBI) programs that benefit consumers and encourage competition, such as pay-as-you-go or pay-per-mile (km) options.
“Many Ontario drivers have significantly changed their driving behaviour as a result of COVID-19. FSRA is working to make it possible for auto insurers to provide options for their customers”, said Tim Bzowey, Executive Vice President, Auto/insurance Products. “We need to be responsive to the evolving needs of drivers and removing regulatory barriers for usage-based insurance is one example.”
UBI programs collect detailed telematics information about where, how and when vehicles are driven. These types of programs give drivers more control over the price of their auto insurance by:
- charging less for safe driving and low kilometres
- charging more for risky driving and high kilometres
- promoting good driving among all participating drivers.
FSRA has removed the following guidance: Usage-based Automobile Pricing in Ontario, No. A-16/16 and No. A-05/13. This change does not affect any existing UBI programs or policies. All new or amended UBI programs must be approved by FSRA before becoming effective and those applications will continue to be subject to rigorous review. For more information, please refer to Private Passenger Auto Insurance Filing Guidelines-Major and Technical Notes.
FSRA will engage consumers to hear about their experiences with UBI in Ontario. Consumers with questions about UBI options available today or their enrollment in a current UBI program are encouraged to contact their auto insurance agent, broker or company.