Ontario auto insurance rates rise for second quarter in a row - Woodmar.ca

Ontario auto insurance rates rise for second quarter in a row

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Ontario auto insurance rates rise for second quarter in a row

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A report released in April found that Ontario’s auto insurance premiums are almost 55% higher than other jurisdictions

Auto insurance rates have risen for the second consecutive quarter although the result is lower than the first-quarter (Q1) increase, according to information released by the Financial Services Commission of Ontario (FSCO).

Q2 saw an average increase of 0.76% when applied across the total market, compared to the jump of 1.24% in Q1 of this year.

FSCO’s notice provides an overview of the private passenger automobile insurance rate changes approved or ordered by the insurance regulator for filings reviewed in the second quarter of 2017. The information is based on the approved rates for 22 insurers that represent 54.9% of the province’s market based on premium volume.

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“Insurers must submit proposed changes to their rates to FSCO for approval along with supporting actuarial data,” the notice states. “FSCO and its actuaries review this data and insurers’ assumptions regarding claims costs, expenses and investment income to ensure that, as required by law, the proposed rates are just and reasonable, not excessive and not going to impair a company’s financial solvency.”

The number of filings reviewed by the regulator and the overall average rate change for the Ontario market may vary from quarter to quarter, based on updated information about claims costs, market conditions and other financial factors, FSCO’s statement notes.

The release of this information follows the publication of a report in April that found Ontario has the most expensive auto insurance premiums in Canada despite also having one of the lowest levels of accidents and fatalities.

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David Marshall, the province’s auto insurance advisor, found that the average auto insurance premium in Ontario is $1,458, which is almost 55% higher than the average of all other Canadian jurisdictions.

Finance Minister Charles Sousa said the government would host consultations on the recommendations made in Marshall’s report in the coming months.

FSCO has published on its website the list of insurers whose rates were approved for the second quarter.

– With files from The Canadian Press

WoodMar Insurance is a full service insurance brokerage licensed through The Registered Insurance Brokers of Ontario. Offering Auto, Home, Business and Life Insurance serving Ontario and our surrounding area of Burlington, Oakville, Milton, Georgetown and Hamilton.