Auto insurance industry welcomes Ontario’s regulation review
Published: November 20, 2018
CATEGORY: Car Insurance
Last week, the Government of Ontario released its Fall Economic Statement, which included a pledge to review auto insurance regulations in the province. The decision to investigate Ontario’s auto insurance regulations has been praised this week by the insurance industry.
The Ontario government announced last week it will commission a “review how auto insurance rates are regulated”. Additionally, the government confirmed it will continue to control the Motor Vehicle Accident Claims Fund.
Private auto insurers in Ontario generally disapprove of having to go through the FSCO. Whether a review will help change this situation remains to be seen. However, the government says it will review regulations “jointly with the Financial Services Regulatory Authority of Ontario.” The announcement was made during the Progressive Conservative’s Economic Outlook and Fiscal Review.
Following the confirmation of the review, the Insurance Bureau of Canada (IBC) applauded the statement:
“We congratulate the government on working to create the type of insurance system that is long overdue,” stated Insurance Bureau of Canada Ontario vice-president Kim Donaldson. “Consumers are looking for more common-sense innovations such as usage-based insurance and the ability to show electronic copies of their insurance documents. Insurers applaud the objective of the Ontario government to modernize the rate regulation process.”
Under the current system, auto insurance rates are determined by the Financial Services Commission of Ontario (FSCO). To change rates (either increase or decrease), an auto insurance company must make a request to the FSCO, along with information that supports the change.
Aviva Canada also praised the review, saying Ontario must adopt modern regulatory systems to drive innovation and reduce costs.
“Today, the Ontario Government has established policy objectives to modernize insurance, to improve affordability, to reduce the regulatory burden, and to foster innovation. Aviva fully supports all these principles,” said Aviva Canada president and CEO Colm Holmes in a statement.
“We look forward to working closely and collaboratively with the Government of Ontario to deliver meaningful change to Ontario drivers, so that we can reward good drivers with the right coverage and the best service at a fair price,” Holmes added.