Ontario’s financial services regulator (FSRA) is requesting industry comments on the fourth and final chapter of its proposed Automobile Insurance Rating and Underwriting Supervision Guidance – which addresses principles-based approaches to auto insurance product, rate and underwriting filing reviews.
“The new supervisory model enhances oversight of industry rating and underwriting practices, holding insurers to higher standards of accountability,” says FSRA, the Financial Services Regulatory Authority of Ontario.
“The proposed guidance aims to increase transparency around the factors influencing auto insurance rates, empowering consumers to make informed decisions. It emphasizes improved rating accuracy and robust consumer protection measures.”
The guidance is scheduled to take effect March 1, 2026.
Faster filing options
Chapter 4 of the guidance gives insurers two new filing streams: fast track and prior approval.
The fast-track stream lets insurers file in that stream to implement new rating changes in one business day. And the prior approval stream requires insurers to delay implementation of rating changes until formal approval is provided.
“Insurers will have access to fast-track and prior approval filing processes depending on the purpose and complexity of the proposed Automobile Insurance Filing and their accreditation status,” FSRA says in its guidance proposals. “Accredited insurers will have privileged access to additional fast-track processes.”
When the guidance takes effect next year, the regulator says it will consider the extent to which submitted rate filings are consistent with outlined expectations and requirements.
“If filings do not meet expectations, FSRA may use its discretionary authority to address identified issues and align automobile rating and underwriting practices with Fair Consumer Outcomes,” it says. This will include, but may not be limited to, requesting changes to future filings, suspending insurers from the fast-track filing process, reviewing insurer accreditation or withdrawing that accreditation.
Related: FSRA’s plans for auto coverage regulation
What’s more, FSRA says it will look for assurances that appropriate levels of analysis and due diligence are being conducted for representations made by insurers.
“FSRA may develop policy positions, or request policy and legal opinions regarding compliance to any applicable laws or other issues as they arise in the sector,” the regulator says. “FSRA will also conduct its own due diligence and reserves the right to request additional supporting information to evaluate whether desired outcomes are being achieved.”
Speak up
Those wishing to submit comments can follow this link and scroll down to the comment and question fields at the bottom of the page. The consultation period closes Feb. 10.
Feature image by iStock/den-belitsky
