The Financial Services Regulatory Authority of Ontario (FSRA) has published its interim supervisory report to outline the progress the regulator has made against its Automobile Insurance Supervision Plan 2023-2025. It says auto insurers in the province need to adopt stronger controls to ensure fair treatment outcomes for consumers.
Between January 2024 and March 2025 FSRA examined five insurers. The Auto Insurance Supervision Plan has been extended until March 31, 2026 to allow the regulator to conduct additional insurer examinations.
They say each examination resulted in recommendations and formal commitments from insurers to implement corrective actions.
“Being physically present is among the most effective methods for understanding and confirming the operations of an insurance company, making on-site examinations a critical conduct tool,” the supervision plan states.
“Over the past year, FSRA conducted examinations of insurers to ensure compliance with FSRA’s expectations of fair consumer treatment,” they write in the interim report. “Insurance companies need to adopt stronger controls, enhanced documentation and improved oversight to ensure fair consumer outcomes and compliance with regulatory requirements.”
No evidence of unfair denials
In underwriting, they say there is no evidence of unfair denials but the regulator says additional underwriting verification may be causing processing delays. “FSRA expects insurers to strengthen monitoring of this practice to support fair consumer outcomes,” they write.
They also found the insurers had limited visibility into the information that brokers provide to customers when selling auto insurance. Insurers are also not collecting enough information to analyze when and why they cancel or choose not to renew a customer’s policy. “This data is important for identifying trends and ensuring decisions are fair and justified.”
Finally, in claims, they say insurers have not collected the information and written consent required prior to referring auto claimants to preferred provider networks (PPNs). When complaints were referred to the ombudsperson, they also say insurers will often fail to issue final position letters.
“These findings highlight the need for stronger controls,” the 2025 Auto supervision interim report states. “Insurers are expected to review these observations and update business practices to ensure they meet both regulatory obligations and the expectations for fair treatment of Ontario auto insurance consumers.”
