FSRA seeking applications to Territories Test and Learn Environment to modernize Ontario’s territory rating in auto insurance
The Financial Services Regulatory Authority of Ontario (FSRA) wants to make sure everyone pays a fair price for auto insurance. That’s why it is launching a Test and Learn Environment (TLE) to look at various ways to apply territory ratings.
FSRA believes this approach will help foster innovation and modernize the outdated territory rating system currently being used. The Territories Test and Learn Environment follows FSRA’s review of territory rating. The review was requested by the Minister of Finance and was completed in August 2023.
Applications for the Territories Test and Learn Environment are now open.
To start, participating auto insurers can propose and test territory rate changes within the Greater Toronto Area for private passenger vehicles over a minimum two-year period. The program may expand to other regions over time. Rate changes will not be implemented until July 2, 2024, to ensure a level playing field.
Interested Auto Insurers can apply through the usual Rate Filing Application Process (Private Passenger Automobile Filing Guidelines - Major).
FSRA will proactively monitor the impact of territory rating changes within the Territories Test and Learn Environment to ensure the intended regulatory outcomes, such as consumer fairness, are achieved. FSRA will eventually publish the results from the Test and Learn Environment on its website.
FSRA will host a webinar on January 25, 2024, on the Territories TLE and attendance will be limited to one representative per company/firm. Specific details will be shared shortly.
FSRA’s Innovation Office enables responsible innovation in Ontario’s financial services sector. The Territories Test and Learn follows the expectations and guiding principles set out in FSRA’s Innovation Framework and Test and Learn Environment (TLEs) for Financial Services Innovation Approach Guidance. FSRA’s approach to innovation and modernization must ultimately benefit the public and consumers.
FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone.
Learn more at www.fsrao.ca.