Toronto, Ontario — The Financial Services Regulatory Authority of Ontario (FSRA) is releasing its first Auto Insurance Supervision Plan to promote public trust between drivers and insurers.
The plan, which will come into effect beginning January 2024, includes three key areas of supervision for auto insurers over 15 months.
These key areas include sale and distribution factors to ensure drivers receive the lowest quote and information is provided to consumers in a clear and timely manner; underwriting factors to eliminate potential discriminatory practices affecting higher-risk customers; and policy servicing factors to ensure claims are processed in a timely, fair and transparent manner as well as to review the number and type of complaints against insurers.
“Executing this plan is crucial in ensuring the fair treatment of consumers, the continued success of Ontario’s auto insurance industry, and FSRA’s commitment to regulatory excellence,” said Huston Loke, executive vice president of market conduct.
“The outcomes of our proactive supervision work will be shared to promote industry compliance with regulatory requirements and used to inform future auto insurance supervision programs.”
The FSRA will take a risk-based approach to selecting insurers for examination under the newly proposed plan.
The implementation of the 2023-2025 Auto Supervision Plan builds on the progress FSRA has made with its multi-year Take-All-Comers Thematic Review to ensure all consumers have fair and timely access to auto insurance.
The FSRA expects insurers to review the plan and other relevant publications to ensure they are complying with the law and other regulatory expectations.
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