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FSCO approves average Ontario auto insurance rate increase of 1.93 percent
Ontario’s financial regulator FSCO approved auto insurance rate filings during the fourth quarter of 2010, averaging an increase of 1.93 percent based on the entire market.
FSCO said that in the fourth quarter, 54.15 percent of the market had rate changes approved, and the average rate change was +3.57 percent when weighted by market share.
Three insurers had rate decreases approved, namely:
- Security National Insurance Company with a -0.01% change
- Farm Mutual Reinsurance Plan Inc. with a -0.24% change
- TD General Insurance Company with a -0.28% change
Three of the largest increases approved are as follows:
- York Fire & Casualty Insurance Company with a +11.98% change
- Pafco Insurance Company with a +10.03% change
- RBC General Insurance Company with a +8.03% change
See below for a complete chart of approved rate changes by company and by coverage.
| ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS APPROVED October 1, 2010 to December 31, 2010 |
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| Insurer | 2009 Market Share % | Effective New Business Date | Effective Renewal Business Date |
Approved Rate Change % |
| Allstate Insurance Company of Canada | 2.87 | 15-Nov-10 | 01-Jan-11 | 6.52 |
| AXA Insurance (Canada) | 2.65 | 01-Jan-11 | 01-Jan-11 | 4.38 |
| AXA Pacific Insurance Company | 0.26 | 01-Jan-11 | 01-Jan-11 | 5.91 |
| Certas Direct Insurance Company (1) | 1.07 | 17-Dec-10 | 15-Feb-11 | 0.00 |
| Certas Home and Auto Insurance Company (1) | 0.01 | 17-Dec-10 | 15-Feb-11 | 0.00 |
| COSECO Insurance Company | 1.47 | 01-Jan-11 | 01-Mar-11 | 0.63 |
| Farm Mutual Reinsurance Plan Inc. | 1.8 | 01-Feb-11 | 01-Feb-11 | -0.24 |
| Intact Insurance Company (2) | 7.33 | 08-Aug-10 | 08-Aug-10 | 2.00 |
| Lombard General Insurance Company of Canada | 0.07 | 01-Jan-11 | 15-Jan-11 | 3.67 |
| Novex Insurance Company (2) | 0.51 | 25-Jul-10 | 25-Jul-10 | 1.08 |
| Pafco Insurance Company | 0.37 | 15-Nov-10 | 01-Jan-11 | 10.03 |
| Personal Insurance Company (1) | 2.96 | 17-Dec-10 | 15-Feb-11 | 0.00 |
| Perth Insurance Company | 1.14 | 15-Nov-10 | 01-Feb-11 | 3.05 |
| Primmum Insurance Company | 1.55 | 01-Jan-11 | 01-Jan-11 | 0.06 |
| RBC General Insurance Company | 2.72 | 07-Nov-10 | 22-Dec-10 | 8.03 |
| RBC Insurance Company of Canada | 0.67 | 07-Nov-10 | 22-Dec-10 | 6.60 |
| Royal & SunAlliance Insurance Company of Canada | 1.47 | 01-Jan-11 | 01-Mar-11 | 6.48 |
| Security National Insurance Company | 5.69 | 01-Jan-11 | 01-Jan-11 | -0.01 |
| State Farm Mutual Automobile Insurance Company | 13.01 | 15-Nov-10 | 15-Nov-10 | 6.44 |
| TD General Insurance Company | 2.48 | 01-Jan-11 | 01-Jan-11 | -0.28 |
| TD Home and Auto Insurance Company | 1.43 | 01-Jan-11 | 01-Jan-11 | 0.08 |
| Trafalgar Insurance Company of Canada | 1.34 | 11-Nov-10 | 01-Jan-11 | 5.57 |
| York Fire & Casualty Insurance Company | 0.88 | 01-Jan-11 | 01-Feb-11 | 11.98 |
| Zenith Insurance Company | 0.4 | 01-Dec-10 | 01-Jan-11 | 3.04 |
Total Market Share Represented: 54.15%
Average Rate Change for Entire Market: +1.93%
Weighted Average Rate Change: +3.57%
- Rate group changes with no overall impact.
- Annual rate capping filing impact – This is the estimated residual impact of a previously approved rate filing that introduced rate capping procedures. The purpose of rate capping is to minimize the rate change for a particular risk over a period of time.
APPROVED RATE CHANGE BY COVERAGE
October 1, 2010 to December 31, 2010
| Coverage | Weighted Average Rate Change % |
| Third Party Liability-Bodily Injury | 3.41 |
| Third Party Liability-Property Damage | -0.41 |
| Standard Accident Benefits | 6.67 |
| Uninsured Automobile | 0.39 |
| Direct Compensation-Property Damage | 1.14 |
| Specified Perils | 0.01 |
| Comprehensive | -2.66 |
| Collision | -1.33 |
| All Perils | 0.65 |
| OPCF 44R Family Protection | 1.16 |
