By: Luke Jones, Published on March 29, 2018 10:24 AM, Last Update on March 29, 2018 07:26 AM
This week, the Ontario government detailed its 2018 Budget plan, which reconfirmed the upcoming Financial Services Regulatory Authority (FSRA). The government announced the replacement for the Financial Services Commission of Ontario (FSCO) will be operational by April 2019. In response, the Insurance Bureau of Canada (IBC) has welcomed the confirmation
The new regulatory body will oversee finance laws in Ontario and will brings a more effective regulation system to the province. FSRA will create legislation that mandates insurance companies to supply vehicle repair and claims history information to prescribed parties.
“We see FSRA as a proactive, innovative regulator that will lead to sustainable improvement in rates for Ontario’s almost 10 million drivers,” said Kim Donaldson, Vice-President, Ontario, IBC. “Ontario’s insurers support this new regulator and we look forward to working with FSRA.”
The FSRA will also be backed by changes to the Insurance Act, allowing prudential oversight over certain insurance companies in Ontario.
Through the wider budget, the government also recommitted to continuing auto insurance reforms in an ongoing effort to reduce premiums. This includes the Fair Auto Insurance Plan, which aims to reduce the cost of insurance in a sustained way. Additionally, the plan will ensure injured people receive a higher level of care.
“Of note, the government has adopted the recommendation made by the industry on how to best manage the care of those who have suffered a catastrophic impairment as the result of a collision,” IBC says. “Instead of making this the responsibility of the Ministry of Health as recommended in David Marshall’s report Fair Benefits Fairly Delivered, there will be funding through the Ontario Neurotrauma Foundation to develop evidence-based programs of care for the most seriously injured.”
Marijuana consumption for recreational purposes will be legalized this summer and Ontario detailed its plans in the Budget. The province highlighted its network for distribution, purchasing, possessing, and consumption of cannabis.