In January 2026, the Financial Services Regulatory Authority of Ontario (FSRA) announced plans to establish a new property and casualty (P&C) oversight division by February 15, 2026.
The regulator first announced its prioritization of P&C insurance supervision back in June 2023. In a statement to the Insurance Portal, representatives of FSRA say to ensure transparency, the regulator will continue to publish plan findings and engage with the industry to improve consumer protection. Under the new organizational structure, they say there may naturally be some adjustments to its overall supervisory strategy. “That will be determined once the team is in place and a fresh review is conducted of the risks in the sector,” they write.
In discussion with FSRA:
Insurance Portal: We’ve in the past discussed the possibility that FSRA may conduct further risk-based reviews and examination of other key insurance coverages in Ontario. Was the new division created to help with this?
FSRA: “The new division was created to enhance sector focus, coordination, and accountability and to further strengthen FSRA’s ability to identify and respond to emerging market risks, while maintaining continuity in regulatory supervision.
That includes supporting risk-based reviews and examinations where appropriate, but the creation of the division does not signal a change in FSRA’s approach.
It’s also important to point out that FSRA’s expectations of the industry have not changed. FSRA adopts a principles-based and outcomes-focused approach based on the regulatory framework. All regulatory requirements remain in effect and our sector supervision will continue uninterrupted.”
Insurance Portal: FSRA has said repeatedly that its approach will ensure that efforts are directed at risks most likely to lead to consumer harm – what do you anticipate this new division will be most focused on at first?
FSRA: “The new division will continue to focus on conduct and business practices that can affect whether consumer outcomes are consistent with regulatory requirements.
P&C conduct supervision, auto insurance supervision (rating and underwriting), and actuarial service will align under the new division to support a more integrated approach to P&C oversight and FSRA will continue to share updates as the division becomes operational.”
