The Financial Services Regulatory Authority of Ontario (FSRA) has scolded the province’s auto insurance industry, reminding members that they are required by law to provide all Ontario consumers with access to timely insurance quotes and the lowest rates available to them.
This reminder of the so-called “Take-All Comers” guidance follows examinations of selected insurers, agents and brokers as part of a large review that included supervisory work by FSRA to identify any practices that are inconsistent with the rule.
Many insurers need to review their current practices
Following public consultation, FSRA said it will require many insurers to review their practices to ensure compliance with the law, report any rule breaches and develop a remediation plan.
The "Take All Comers" guidance will lead to strengthened conduct standards which will improve fairness in the system for consumers, said FSRA.
“Auto insurance is necessary to operate a vehicle in Ontario and FSRA is taking steps to ensure that all consumers can get the best product at the best price available when they purchase or renew their auto insurance policy,” FSRA said in a statement.
Compliance with requirements will ensure a level playing field
Full compliance with requirements by the industry will prevent activities that can “frustrate” consumer efforts to purchase or renew their auto insurance when they otherwise qualify for a quote or a renewal.
Strengthened standards will also help to ensure a level playing field for all industry participants on which to compete for consumers business, said FSRA.
If the “Take-All-Comers” rule is violated, FSRA can take a variety of regulatory enforcement actions, depending on the nature and severity of the non-compliance.