Financial Services Regulatory Authority of Ontario identifies control and documentation weaknesses in auto insurers and extends its supervision plan to March 2026

The Financial Services Regulatory Authority of Ontario published its 2025 Auto Supervision Interim Report, concluding that auto insurers need stronger controls, enhanced documentation and improved oversight to ensure fair consumer outcomes and compliance with regulatory requirements. The findings draw on examinations conducted over the past year against FSRA’s expectations of fair consumer treatment, with each insurer committing to make the required improvements. While insurers largely met FSRA’s expectations, the report highlights targeted gaps. Underwriting generally followed approved rules with no evidence of unfair denials, but added underwriting verification may be contributing to processing delays, prompting an expectation that insurers strengthen monitoring. Insurers also had limited visibility into what brokers disclose to customers at purchase, collected insufficient data to analyse cancellations and non-renewals for fairness and justification, and, where claimants were referred to Preferred Provider Networks, lacked documentation demonstrating required disclosures and claimant written consent. To broaden its understanding of industry practices, FSRA extended its work under the Auto Insurance Supervision Plan until 31 March 2026, with a final report due once the additional examinations are completed.