Toronto, Ontario — Ontario’s financial regulator has called out 12 insurance companies for non-compliance with the province’s “Take-All-Comers” requirement, alleging in a 45-page report that consumers have been blocked from accessing mandatory auto insurance.
In Ontario, the “Take-All-Comers” mandate states that insurers are required by law to accept business from all consumers who meet FSRA-approved underwriting rules
The Financial Services Regulatory Authority of Ontario (FSRA) says it will conduct reviews of Allstate, Aviva, CAA, Cooperators, Desjardins, Definity, Gore, Intact, Northbridge, TD, Travelers, Wawanesa.
Even unnecessary delays in providing an insurance quote or the quoting of higher premium costs can be grounds for the FSRA to claim a breach of the “Take-All-Comers” mandate, according to the regulator’s report.
Echoing a tactic used by one of the very insurers to be reviewed, the FSRA says the process will in some cases involve a “secret shopper” program to maintain supervision of the companies.
Speaking of “one of those very insurers”, the FSRA also said they have already charged monetary penalties of $600,000 to two insurers within the Aviva group for failing to address its non-compliance.
“The “Take-All-Comers” requirement is a cornerstone of ensuring Ontario consumers have access to auto insurance at the lowest available rate,” said FSRA CEO Mark White.
“It is very hard for consumers, and it’s even hard for a regulator to identify when insurance quotes for qualifying customers are withheld or delayed. Our eventual success in rooting out this non-compliance required perseverance and the use of governance, controls and processes within the insurance companies themselves to self-identify and remediate these consumer harms.”
The regulator also reiterated its efforts to protect insurance industry employees via its whistleblower program.
Click here to access the FSRA’s full review of “Take-All-Comers” compliance.
