Ontario auto insurance rates increase by average of 3.05% in Q3
The average rate change for automobile insurance in Ontario increased by 3.05 percent, when weighted by market share said the Financial Services Commission of Ontario (FSCO).
In the third quarter of 2011, for the 39.66% of the market that had rate changes approved, the average rate change was +3.05%, when weighted by market share.
Rate filings approved during the third quarter of 2011 (July 1 to September 30) averaged 1.21%, based on the entire market.
The rate changes approved in the third quarter of 2011 become effective in the third quarter or later.
FSCO reported the following rate changes:
ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS APPROVED
July 1, 2011 to September 30, 2011
|
Insurer |
2010 Market Share % |
Effective New Business Date |
Effective Renewal Business Date |
Approved Rate change % |
| Co-operators General Insurance Company |
4.35 |
29-Jul-11 |
29-Jul-11 |
-0.15 |
| Intact Insurance Company |
7.16 |
08-Aug-11 |
08-Aug-11 |
0.84 |
| Intact Insurance Company |
7.16 |
01-Sep-11 |
01-Oct-11 |
2.26 |
| Intact Insurance Company (1) |
10.17 |
15-Oct-11 |
01-Dec-11 |
-0.43 |
| Motors Insurance Corporation |
0.57 |
08-Aug-11 |
02-Oct-11 |
10.34 |
| Novex Insurance Company |
0.63 |
25-Jul-11 |
25-Jul-11 |
0.26 |
| Novex Insurance Company (1) |
0.76 |
15-Oct-11 |
01-Dec-11 |
-1.77 |
| Optimum Insurance Company Inc. (2) |
0.26 |
01-Aug-11 |
15-Sep-11 |
0.00 |
| Pafco Insurance Company |
0.57 |
15-Jul-11 |
01-Sep-11 |
4.76 |
| Personal Insurance Company |
2.91 |
09-Sep-11 |
08-Nov-11 |
2.00 |
| Portage La Prairie Mutual Insurance Company |
0.25 |
01-Sep-11 |
01-Nov-11 |
2.04 |
| State Farm Mutual Automobile Insurance Company |
12.43 |
21-Nov-11 |
21-Nov-11 |
3.16 |
| Waterloo Insurance Company |
0.71 |
01-Nov-11 |
01-Jan-12 |
0.43 |
| Wawanesa Mutual Insurance Company |
4.27 |
01-Oct-11 |
01-Oct-11 |
9.89 |
| Western Assurance Company |
1.06 |
01-Sep-11 |
29-Oct-11 |
3.43 |
| XL Insurance Company Limited (3) |
0.00 |
01-Oct-11 |
N/A |
N/A |
| York Fire & Casualty Insurance Company |
0.94 |
01-Jul-11 |
01-Aug-11 |
3.96 |
| Zenith Insurance Company |
0.41 |
01-Sep-11 |
01-Sep-11 |
1.97 |
- Includes the acquisition of AXA Insurance (Canada) and AXA Pacific Insurance Company
- Rate Change with no overall impact.
- XL is a new entrant to the Ontario automobile insurance market.
Total Market Share Represented: 39.66%
| Weighted Average Rate Change: | 3.05% |
The regulator added that when an insurance company adjusts its rates for any given coverage, it means that the company has experienced a change in the claims costs for that coverage. For example, an increase to rates for Accident Benefits coverage would indicate that an insurance company has experienced an increased number and/ or increased average cost of Accident Benefit claims. A company must provide its claims costs for each coverage in support of any change in rates. The weighted average approved rate change shown is the average for each coverage based on the company filings that were approved during the quarter.
APPROVED RATE CHANGE BY COVERAGE
July 1, 2011 to September 30, 2011
| Coverage |
Weighted Average Rate Change % |
| Third Party Liability-Bodily Injury |
4.58 |
| Third Party Liability-Property Damage |
3.96 |
| Standard Accident Benefits |
4.60 |
| Uninsured Automobile |
4.03 |
| Direct Compensation-Property Damage |
-0.84 |
| Specified Perils |
-29.60 |
| Comprehensive |
-5.80 |
| Collision |
-2.61 |
| All Perils |
-3.46 |
| OPCF 44R Family Protection |
-6.62 |
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