FSRA Launches Auto Insurance Guidance to help ensure Consumers are Treated Fairly

TORONTO, Dec. 8, 2021 /CNW/ - The Financial Services Regulatory Authority of Ontario (FSRA) is consulting on three proposed guidances that aim to make Ontario's auto insurance practices more transparent and effective, processes faster and more efficient, while further strengthening consumer protections.

Together, these Guidances are a significant and important move towards the implementation of the auto insurance rates and underwriting regulation strategy, which is a target outcome in FSRA's 2022-23 Statement of Priorities.

The consultation period is now open and will close on February 25, 2022.

Proposed Guidance for Operational Risk Management Framework in Rating and Underwriting of Automobile Insurance

The proposed Operational Risk Management (ORM) guidance is principles-based and outcomes-focused. The future of ORM requires accountability and sound governance in the auto insurance sector. It ensures that consumers are being charged just, reasonable, and accurate rates and are being treated fairly in the underwriting process.

The proposed guidance outlines foundational and sound practices for ORM in the rating and underwriting of automobile insurance, including:

• The ORM cycle (e.g., risk identification and monitoring)
• Foundational practices (e.g., defining risk appetite and defining roles)
• Model governance

Read more: Consultation on Proposed Guidance for Operational Risk Management Framework in Rating and Underwriting of Automobile Insurance 

Proposed Guidance for Reporting and Resolution of Automobile Insurance Rating and Underwriting Errors

The Proposed Guidance ensures Ontario auto insurance companies are aware of FSRA's requirements when rating and underwriting errors occur, and outlines:

• The expectation for proper notice and resolution of rating and underwriting errors for auto insurance consumers
• FSRA's supervisory approach, including examination of insurers and consequences of failure to comply
• A new process to publish errors publicly on the FSRA website

Read more: Consultation on Proposed Guidance for Reporting and Resolution of Automobile Insurance Rating and Underwriting Errors Open Primary tabs configuration options

Automobile Insurance Non-Standard Forms, Endorsements and Certificates of Insurance Approval Filing Process Guidance

The Forms and Endorsements Approval Filing Process Guidance introduces a streamlined process that reduces regulatory burden and improves the timelines for the approval of non-standard forms and endorsements. Increasing process efficiency will also help shorten the time it takes for insurers to bring new and innovative consumer products to market.

Some key features of the guidance include:

• One single filing process in place of multiple filings
•  A streamlined review process with standardized service standards to help insurers anticipate timelines
• Improved transparency through publication of non-standard forms where relevant

Read more: Consultation on Proposed Guidance for Automobile Insurance Non-Standard Forms, Endorsements and Certificates of Insurance Approval Filing Process

Learn more: FSRA is continuing to work with those we regulate to ensure financial safety, fairness and choice for consumers and members. Learn more at www.fsrao.ca.

SOURCE Financial Services Regulatory Authority of Ontario