Financial Services Regulatory Authority of Ontario releases updated guidance and benchmarks for auto insurance rate filings

The Financial Services Regulatory Authority of Ontario (FSRA) has released its Annual Review Guidance and Benchmarks for auto insurance to support its oversight of whether insurers’ proposed rate changes remain fair and reasonable for consumers. The benchmarks will be used to assess actuarial support for filings and to monitor trends across the Ontario auto insurance market. Updated expectations focus on several pricing and underwriting issues. For auto theft, FSRA notes theft-related claims are improving from crisis levels and expects insurers to reflect those trends in pricing for high-theft-risk vehicles, supported by actuarial justification. For electric vehicles, FSRA expects EV rating practices to be grounded in actual and emerging claims experience now that more data is available. On app-based rideshare use of personal vehicles, insurers are expected to review practices so that consumers with commercial rideshare coverage are not denied personal insurance or charged additional premiums solely because they use their vehicle for rideshare. For driving experience from outside Canada, insurers are expected to recognize Ministry of Transportation-verified foreign driving experience through reciprocal agreements as soon as practicable. FSRA will continue to consult annually and update its benchmarks twice a year.