The Financial Services Regulatory Authority of Ontario (FSRA) has published its first Auto Insurance Supervision Plan, outlining its intention to supervise auto insurers in three key areas over the coming 15-months, beginning in January 2024.
They say FSRA will take a risk-based approach to selecting insurers for examination under the plan.
“As insurers continue to evolve, innovating the ways they operate, FSRA recognizes the importance of keeping abreast of these developments. 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.
The plan, they say, builds on the regulator’s multi-year Take-All-Comers thematic review, “to ensure all customers have fair and timely access to auto insurance.” Overall, FSRA licenses and oversees approximately 170 insurers and 10,631 agents authorized to sell car insurance in Ontario.
“By adopting a risk-based approach, FSRA can dedicate its resources to areas representing the greatest potential harm to protect policyholders,” the report states. “Ongoing supervision through on-site examinations, as outlined, will ensure the highest standards of compliance with insurance laws and FTC (fair treatment of customer) principles. Executing this plan is crucial in ensuring the continued success of Ontario’s automobile insurance industry.”
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